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Cimulate, a provider of AI-driven search for digital commerce, raised a $28.5 million Series A, its CEO John Andrews tells Axios exclusively.

Why it matters: Retail tech startups deploying AI have been raising money hand over fist — a trend expected to continue as large e-commerce players like Amazon and Walmart hone their search strategies. 

How it works: Cimulate's platform, which it calls CustomerGPT, is centered on an LLM-based operating system that provides search, product discovery and conversational AI.

The idea is to improve search by making it personalized and conversational, so the customer can find what they are looking for without having to be exact, Andrews explains.

"We're working on being more precise in terms of assortment you show to customers," and to suggest products that are either truly complimentary or substitutes, he says.

Zoom in: The round was led by Spark Capital, with participation from existing investors Sierra Ventures and Pillar VC, as well as LFX Venture Partners and Commerce Ventures, Andrews says.

It increases the company's total funding to about $33.5 million, he says.

Between the lines: Spark was chosen because it knows the space well and is well respected, as an early investor in Twitter, Slack and Anthropic, Andrews says.

It also sets the company up for future fundraising as the firm has deep pockets to continue to invest, he says.

What's next: Cimulate will likely raise more funding in two or three years, Andrews says.

Catch up quick: Cimulate, which was co-founded by Andrews and Vivek Farias, previously raised a seed of a little more than $5 million, the CEO says.

The co-founders were behind AI-driven predictive analytics startup Celect, which they sold to Nike in 2019.

Exclusive: AI-driven search startup Cimulate raises $28.5M Series A

Retail tech startups deploying AI have been raising money hand over fist.

Illustration of an internet search bar on fire.

Cimulate, a provider of <a class="gtmContentClick" data-vars-link-text="AI-driven search" data-vars-click-url="https://www.axios.com/2024/11/01/openai-search-business-chatgpt-disruption-google" data-vars-content-id="ae75a2a7-96cd-44b4-bd5a-9fa242532c14" data-vars-headline="Exclusive: AI-driven search startup Cimulate raises $28.5M Series A" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/11/01/openai-search-business-chatgpt-disruption-google" target="_self">AI-driven search</a> for digital commerce, raised a $28.5 million Series A, its CEO John Andrews tells Axios exclusively.Why it matters: Retail tech startups <a class="gtmContentClick" data-vars-link-text="deploying AI" data-vars-click-url="https://www.axios.com/pro/retail-deals/2024/11/04/visual-e-commerce-search-startup-miros-raises-round-artificial-intelligence" data-vars-content-id="ae75a2a7-96cd-44b4-bd5a-9fa242532c14" data-vars-headline="Exclusive: AI-driven search startup Cimulate raises $28.5M Series A" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/retail-deals/2024/11/04/visual-e-commerce-search-startup-miros-raises-round-artificial-intelligence" target="_self">deploying AI</a> have been <a class="gtmContentClick" data-vars-link-text="raising money" data-vars-click-url="https://www.axios.com/pro/retail-deals/2024/12/11/artificial-intelligence-agent-retail-tech-rapidcanvas-funding" data-vars-content-id="ae75a2a7-96cd-44b4-bd5a-9fa242532c14" data-vars-headline="Exclusive: AI-driven search startup Cimulate raises $28.5M Series A" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/retail-deals/2024/12/11/artificial-intelligence-agent-retail-tech-rapidcanvas-funding" target="_self">raising money</a> <a class="gtmContentClick" data-vars-link-text="hand over fist" data-vars-click-url="https://www.axios.com/pro/retail-deals/2024/10/02/visual-ai-vizit-venture-capital" data-vars-content-id="ae75a2a7-96cd-44b4-bd5a-9fa242532c14" data-vars-headline="Exclusive: AI-driven search startup Cimulate raises $28.5M Series A" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/retail-deals/2024/10/02/visual-ai-vizit-venture-capital" target="_self">hand over fist</a> — a trend expected to <a class="gtmContentClick" data-vars-link-text="continue" data-vars-click-url="https://www.axios.com/pro/retail-deals/2024/10/28/visual-merchandising-nfinite-raising-capital-spatial-ai" data-vars-content-id="ae75a2a7-96cd-44b4-bd5a-9fa242532c14" data-vars-headline="Exclusive: AI-driven search startup Cimulate raises $28.5M Series A" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/retail-deals/2024/10/28/visual-merchandising-nfinite-raising-capital-spatial-ai" target="_self">continue</a> as large e-commerce players like Amazon and Walmart <a class="gtmContentClick" data-vars-link-text="hone their search strategies" data-vars-click-url="https://www.axios.com/2024/02/01/amazon-app-rufus-ai-shopping-assistant" data-vars-content-id="ae75a2a7-96cd-44b4-bd5a-9fa242532c14" data-vars-headline="Exclusive: AI-driven search startup Cimulate raises $28.5M Series A" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/02/01/amazon-app-rufus-ai-shopping-assistant" target="_self">hone their search strategies</a>.

Exclusive: AI-driven search startup Cimulate raises $28.5M Series A

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