The San Antonio based company Scalesworks is a private equity firm that acquires startups worth
between 4 million and $10 million in annual run rate (ARR) and works to expand
them. With its first $60 million fund, it bought eight firms. These
collectively grew 52% to $80 million in revenue last year.
The firm recently announced that it has acquired
SearchSpring. This is a privately funded Colorado-based e-commerce company that offers AI-powered search and navigation
products to brands such as Moen, Kate Somerville, Volcom, Wet Seal, Natori,
Bikini.com, Wildfox, Lime Crime, Wine Enthusiast, Charles & Colvard,
SaintBernard Sports, and Bethesda Game Studios. Ever since its launch in 2007,
it has powered more than 9.2 billion searches. Its CEO Gareth Dismore said
that, “After 11 years of operating independently as a bootstrapped company, SearchSpring
will now have the backing of a team of technology veterans that share our passion
for search, merchandising and helping brands and retailers succeed online”.
Currently, Amazon is dominating the e-commerce sector.
However, the rise of small direct-to-consumer player is a growing trend. SearchSpring
is a huge opportunity that will help enhance the go-to-market approach because
of its great size. Its platform functions by ingesting companies’ catalogue
using natural language processing. It is able to correct the difference between
a shirt dress and a dress shirt and to correct typos in queries.
SearchSpring
utilises AI
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