Constructor announces $25 million Series B led by Sapphire Ventures, tripling valuation to $550 million

Constructor, an AI powered product discovery and search platform for enterprise e-commerce firms, has closed a $25 million Series B round, bringing the company’s valuation to $550 million.

This marks a nearly triple valuation since its 2021 Series A and brings total funds raised to date to more than $85 million.

Sapphire Ventures led the round with participation from existing investor Silversmith Capital Partners.

With this new capital, Constructor will accelerate product development and innovation and continue its international expansion.

“In today’s competitive e-commerce environment, having a powerful AI search solution that can best capture shopper intent is crucial to driving topline revenues – yet until now, existing tech has remained rudimentary,” says Rajeev Dham, Partner at Sapphire Ventures, who will be joining as a board director.

“With more than a decade of experience in the field, Eli and the team at Constructor have developed a state-of-the-art, AI e-commerce search engine that has delivered best-in-class ROI for many household enterprise brands.”

“We are incredibly excited to partner with the team as they set a new standard in powering a hyper-personalised shopper experience.”

Eli Finkelshteyn, CEO and Co-founder at Constructor, says: “We’re very proud of this fundraise, but it’s important for us to remember that it’s only a symptom of doing good work for our customers. If we don’t use this to do better for them, then we’re missing the point.”

“We started Constructor off with what, at the time, seemed like a crazy idea to most of our industry: that learning shoppers’ preferences via AI can give them a far better search and product discovery experience than simply matching on the keywords they type.”

“We believe putting AI at the core of our system from the beginning has played a large role in the successes we’ve been able to bring our customers — but also believe there’s always room to serve them better, and that’s the main thing we want to use this investment for.”

“Our success will always be a symptom and function of theirs. And through our partnerships with Sapphire Ventures and Silversmith Capital Partners, we’re extremely excited to build out more e-commerce functionality and expand to additional geographies — driving more value for our customers around the world.”

Petco

Pet health and wellness retailer Petco recently turned to Constructor to power and personalise search results, browse experiences, product recommendations and landing pages across its website and mobile app, driving a 13% increase in e-commerce conversions and 4% increase in site wide revenue.

“The thing we liked about Constructor was that not only was it real AI, specifically made for our industry, but that their AI is incredibly transparent,” says Tony Gabriele, Vice President of Digital Strategy, Petco.

“None of it is black box – so we don’t have to guess what it’s doing or why – and when we have questions, the Constructor team is always happy to talk us through it. We evaluated every vendor on the market, and Constructor was just different.”

“The system is easy to use, the team is motivated and delightful to work with, and most importantly, it paid for itself plus the cost of switching in less than a year after we implemented it.”

“AI first companies like Constructor are leading a shift in software away from simply offering workflow management, towards delivering business results,” says Silversmith General Partner, Sri Rao.

“We are encouraged by the company’s ability to maintain its dedication to innovation and customer success while navigating rapid growth since our initial investment, and are excited to both expand our commitment as well as welcome Sapphire Ventures as Constructor enters the next phase of growth.”