Miros raises EUR€6 million to enhance visual search tech

Miros has secured a EUR €6 million pre-Series A investment round led by EBRD Venture Capital and Tera Ventures, with participation from former Estonian President Toomas Hendrik Ilves as an angel investor.

The funding will be used to enhance the company's research and development capabilities, further technology development, and extend its market reach. This investment brings Miros' total raised capital to EUR €8 million.

Miros addresses a significant challenge in the e-commerce industry, where customer inability to find desired products results in lost sales, estimated at USD $2 trillion. Using visual AI technology, Miros aims to enhance product findability by predicting shopper intent and facilitating faster product discovery compared to traditional online search methods.

Research by Google indicates that 60% of online shoppers can't find the product they intend to purchase, particularly when dealing with visually complex items that are difficult to describe verbally or through existing search categories.

Miros' visual search technology provides a competitive edge to retailers by circumventing these limitations. The technology allows customers to visually communicate their search preferences, leading to improved product discovery and conversion rates. Clients of Miros have reported revenue increases of over 31% and a 90% boost in customer loyalty.

Miros can understand product contexts from images, even in the absence of comprehensive product metadata. The AI can recognise shopping patterns and aligns with user intentions, assisting users in finding desired products within 60 seconds.

Heikki Haldre, Co-Founder and CEO of Miros, stated, "The world doesn't lack products. Finding them is the problem. We've all wasted hours online, endlessly scrolling and searching for the perfect item."

Haldre further explained, "At Miros, we're building the new online shopping experience where you can find a product in less than 60 seconds. Even when the products are so visually complex that the words fail us, the shop understands us nevertheless. The experience feels magical. Why would I shop anywhere else and spend hours searching for products?"

Jomashop, a prominent luxury goods retailer in the US, has adopted Miros' AI-powered technology. Since then, they have experienced a 3.6% increase in gross merchandise value and a 1.3% rise in average order value.

Isaac Montaine, VP of Product Management at Jomashop, stated, "Miros has been a game-changer for our business. By empowering customers to discover products effortlessly, we've seen a significant improvement in sales and customer satisfaction."

Aziza Zakhidova, Associate Director at EBRD Venture Capital, remarked, "We are excited to back Heikki and team as they transform the search experience in e-commerce. Miros visual search is impressive: buyers can enjoy a more intuitive shopping experience and find what they are looking for, while retailers can see improvements in conversions. By augmenting product discovery with visual search, Miros has the potential to address a fundamental pain point in e-commerce search."

Former Estonian President Toomas Hendrik Ilves commented, "As a strong supporter of innovation in technology, especially using artificial intelligence, I was particularly impressed by Miros' ability to address a fundamental challenge in e-commerce — the frustration of not finding what I am looking for on existing internet search engines. It took just 17 minutes to decide I wanted to invest when I saw firsthand how Miros' powerful AI-powered visual search technology can completely change and revolutionise online shopping globally. I am always thrilled to see Estonian entrepreneurs at the forefront of innovation."

Heikki Haldre, Paul Pallin, and Mart Parve founded Miros. Before Miros, Haldre and Pallin co-founded Fits.me, a bio-robotics technology firm for fashion e-commerce, later acquired by Rakuten.

Miros' technology, originating from the University of Tartu, a leading computer vision AI research institution, has shown notable improvements for its clients, with general revenue increases of 9.8%. Partners such as SAP, Nvidia, and PwC underline Miros' credibility and potential for broader adoption.

The company, with a team based in Tallinn, London, and Lisbon, is aiming for a global market, with a focus on expanding its presence in the US. Miros is actively expanding its partnerships and workforce as part of its growth strategy.