Zoovu announced the acquisition of XGEN AI to create a unified AI-native engine for e-commerce product discovery. The combined platform brings together search, recommendations, personalization, guided selling, bundling, and conversational AI into a single system designed for enterprise B2C and B2B ecommerce teams.
According to the announcement, many enterprise brands currently rely on multiple disconnected vendors for product discovery, resulting in fragmented shopper experiences and lower conversion performance. By combining the capabilities of both companies, Zoovu aims to unify these functions on one data model, one personalization layer, and one analytics framework.
The combined company said the platform is already being used by major global brands including Microsoft, Valentino, Ferragamo, Honeywell, Bosch, Canon, and Sonos. The companies reported measurable improvements in search conversion and recommendation performance, including a 25% increase in add-to-cart rates for Microsoft.
The transaction was backed by FTV Capital, Zoovu’s lead investor. Financial terms of the acquisition were not disclosed.
KEY QUOTES:
“The next generation of product discovery isn’t a stack — it’s an engine, with AI at its core rather than bolted on. It learns from every shopper interaction across experiences such as search, email, and recommendations, and applies that learning everywhere, instantly. It works as well for a luxury fashion shopper exploring a new collection as it does for a Honeywell buyer specifying industrial equipment.”
Jonathan Taylor, CEO, Zoovu
“Zoovu and XGEN AI share the same conviction: that AI in ecommerce should serve the shopper and the business, not lock either one into a black box. Joining Zoovu lets us deliver conversational AI search alongside guided buying, bundling, and AI assistants — all on one ecommerce revenue engine. It gives our customers a single platform that grows with them.”
Mark Steele, CEO, XGEN AI
“Zoovu has built one of the most differentiated AI-native platforms in enterprise ecommerce, and the addition of XGEN AI accelerates its leadership in a category that is rapidly consolidating around AI. We are proud to back Jonathan and the team as they bring together two AI-native businesses to define the future of product discovery.”
Alex Malvone, Partner, FTV Capital
