According to a report by McKinsey, consumer goods companies are 3.5 times more likely to use granular data for accurate decision-making. This is due to the challenges such as inflation, supply chain disruptions, and rapidly evolving consumer preferences.
However, the incumbent data and insights market offers lack granularity and speed. Point-of-Sale (POS) data providers do not have full retailer coverage and cannot report retailer-specific sales figures, producing only aggregates. On the other hand, traditional consumer panels lack adequate sample sizes to provide granular data on individual products. This is where Madrid-based Algori comes into the picture with near real-time and granular data, which is relevant given the current conditions in the consumer goods market.
Raises €3.3M seed funding
The Spanish data insights startup for the consumer goods vertical with a mission to reimagine the consumer panel has secured €3.3 million in funding. The seed investment was co-led by Shilling Capital and Change Ventures, joined by Flashpoint, which backed Welcome Pickups and Guesty. The round also featured several angel investors, including former Numerator Board Member and Infoscout CEO Jared Schrieber, who led Numerator to a $1.5 billion exit to Kantar. A number of Algori’s own employees also invested as part of the deal.
The round takes Algori’s total funding to €4.3 million. Algori plans to roll out its new products in Spain prior to expanding into additional major Western European markets. Also, it will direct the funds to expand data science capabilities. Currently active in Spain, its consumer panel is almost four times the size of the country’s largest incumbent.
Andrius Juozapaitis, CEO and co-founder of Algori, said: “We are leveraging technology in a new way, rethinking the entire process to push the boundaries of FMCG data insights and significantly accelerate the data-driven decision-making capabilities in the sector. Our ultimate goal is to help consumer goods companies get more distribution, more sales, and execute their marketing strategies better.”
Ricardo Jacinto, Partner at Shilling Capital commented: “Algori has identified an unmet market research need and an opportunity to radically improve the way FMCG brands use consumer data in an industry worth more than €1 trillion in Europe alone. The team is abundant with industry veterans possessing deep expertise, exceptional for a startup at this stage. Their product has surpassed competitors in terms of methodology and utility. It is future-proof and unchallenged by AI. We believe Algori can usher in a new era of FMCG market research.”
AI-based consumer analytics platform
Founded in Madrid in 2019, Algori is an AI-enabled consumer analytics platform. It enables smarter decision-making in fast-moving consumer goods (FMCG) companies by leveraging consumer shopping basket data. Algori provides the fastest and most granular data insights thanks to near real-time, stock-keeping unit (SKU) level basket data from the largest panel sample of 45,000 weekly shoppers in Spain. The company is disrupting the incumbent household purchase panels in Spain, as it enables both large and small FMCG companies to benefit from the freshest data insights with flexible and transparent pricing.
With its machine learning and data organisational capabilities, the company identifies the shopping basket items on the product level without the need for any retailer sales system integrations. The shopping basket data is further enriched with shopper demographics, psychographics, past purchase history, store locations, and other valuable data points. This data is then integrated into a platform providing stock keeping unit (SKU) level insights. The entire process unfolds in near real-time, significantly outpacing incumbents in delivery and scale.
Already, Algori partners with several leading FMCG companies in the Iberian region. The company has amassed 50,000 weekly shoppers allowing it to capture 1 in 400 grocery receipts in Spain. Furthermore, Algori rewards money to its consumer app users in exchange for providing their shopping data.
