Karma, AI shopping assistant and shopping network, announced that in their Series A funding round they have raised $25 million. The rounds were led by Target Global followed by MoreTech Ventures, and participation from NFX and Altair Capital.
Founded in 2014, Tel Aviv-based company worked as simple bookmarklet tool to help consumers track products. Since then, they have launched browser extensions and employs nearly 60 people across Tel Aviv, Belarus, Minsk, and the U.S.
“Karma started with a very simple need: just knowing when something goes on sale in your size and color in real-time,” Jonathan Freidman, Karma CEO and co-founder, told TechCrunch in an interview.
“The idea is originally from my wife. She came to us one day and said: why isn’t this process automated? We started from there, basically just knowing when there’s a price change and automating that for the user,” he said.
Today, Karma has three core functions:
- Creating shopping lists to save product for later in one universal cart. Once save, the app will keep track of the product and alert the users if there’s a price change or it comes back in stock.
- Automatically searches for coupons at checkout, similar to PayPal’s Honey The app then takes users on the complete pre-purchasing journey and aggregates relevant services all in one place.
- The third core function allows users to earn cashback on retailers and they surface all relevant cashback offers that user are eligible for.
“All three of these functions aim to help you automate a lot of the pre-purchasing journey and save time and money. We always want to try to provide users with the best value, but it’s very important for us to streamline the experience,” Friedman said.
“Today, you need a lot of different apps for different things like coupons or cashback, but we offer all of that in one ecosystem,” he noted.
Friedman says that the company will focus on doubling the size of its team with this latest round of funding in the coming months. They also plan to add more features in the future to invest in AI and ML. Besides, they will focus on growing its userbase.
Currently, they have around 650,000 monthly active user sand $3 million customers. Plus, their userbase has been growing between 15% to 20% month-over-month, and the users have saved a total of over $144 million.