Created in the leading European computer vision AI research institution, the University of Tartu, Miros’ approach tackles the two trillion US dollars problem facing e-commerce: lost sales due to customers unable to find what they’re looking for.
For a former president to take part in a start-up’s first major funding round is exceptional, but then Estonia’s start-up is precisely that: exceptional.
Toomas Hendrik Ilves was president of Estonia from 2006-16, during which time the country became one of the world’s most advanced digital societies, and which can now boast more start-ups and unicorns per capita than any other nation. Its digital e-government tools, which make just about all public services available online, has become the envy of—and indeed a blueprint for—countries across the globe.
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Since leaving office, Ilves has continued to be an advocate for Estonia’s digital society and start-up culture, regularly giving talks in which he espouses the benefits of creating and supporting the development of knowledge economies.
He is also prepared to put his money where his mouth is, most recently in backing, as an angel investor, Estonian e-commerce start-up Miros, which last week closed a series A funding round worth six million euros. The round was led by EBRD Venture Capital and Tera Ventures.
“As a strong supporter of innovation in technology, especially using artificial intelligence (AI), 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,” says Ilves.
“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 revolutionize online shopping globally. I am always thrilled to see Estonian entrepreneurs at the forefront of innovation.”
Created in the leading European computer vision AI research institution, the University of Tartu, Miros’ approach tackles the two trillion US dollars problem facing e-commerce: lost sales due to customers unable to find what they’re looking for.
Using visual AI technology, Miros can predict shoppers’ intent, enabling users to find what they are looking for faster than traditional online search.
According to Google research, online shoppers can’t find what they’re looking for 60 per cent of the time, especially when it comes to visually complex products that are hard to describe using words and categories.
Miros’ visual search technology offers retailers a competitive advantage by addressing this pain point.
By offering customers a method to communicate their search ideas visually, Miros offers higher success rates, both in terms of product discovery and conversion. Neither Amazon, Google, nor Algolia have been able to offer a search based on images that someone can’t articulate. Miros says that its clients have seen revenue increases of over 31 per cent and 90 per cent in customer loyalty.
Heikki Haldre, co-founder and CEO at Miros, says, “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 adds that Miros is building a new online shopping experience where shoppers 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,” he says. “The experience feels magical. Why would I shop anywhere else and spend hours searching for products?”
Game-changer
Miros has already established partnerships with industry giants like SAP, Nvidia, and PwC, demonstrating its credibility and potential for widespread adoption. The company is also actively expanding its market reach, focusing on European and US retailers.
Jomashop, a leading US-based luxury goods retailer, is one of the clients that has successfully implemented Miros’ AI-powered visual search technology. Since adopting Miros, Jomashop says that it has experienced a remarkable 3.6 per cent increase in gross merchandise value (GMV) and a 1.3 per cent lift in average order value (AOV).
“Miros has been a game-changer for our business,” says Isaac Montaine, VP of product management at Jomashop. “By empowering customers to discover products effortlessly, we’ve seen a significant improvement in sales and customer satisfaction.”
Miros will use the funding to enhance research and development, further develop its technology, and expand market reach.
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