Augmodo, a Seattle-based startup focused on helping retailers track and manage inventory more effectively, recently raised $5.3 million in seed funding. The round was led by Lerer Hippeau, with participation from Dunnhumby Ventures, NewFare Partners, and Simple Food Ventures. The company’s technology relies on a combination of computer vision, augmented reality, AI, spatial computing, 3D mapping, and data analysis, starting with the use of “Smartbadges” worn by store employees to collect inventory data.
Out-of-stock goods, overstocks, and returns cost the global retail industry an estimated $1.75 trillion annually. Augmodo’s Smartbadge technology allows for more efficient and cost-effective collection of data related to empty shelves, product availability, and more. This data can provide valuable insights for store managers, headquarters, and brands about trends and issues along the supply chain. Augmodo aims to reduce lost revenue from store inefficiencies and data disconnects, which currently account for 11.7% of overall revenue losses in retail.
The founder and CEO of Augmodo, Ross Finman, previously worked at Niantic Labs, the company behind the location-based game “Pokémon Go.” Niantic acquired Finman’s first AR company, Escher Reality, in 2018. Chemist Warehouse, the largest pharmacy retailer in Australia, is one of Augmodo’s early customers, with 535 locations in Australia and internationally. The startup also plans to target grocery retailers due to their high throughput and large workforce, presenting significant real-world data problems that Augmodo’s technology can help address.
With the new funding, Augmodo plans to conduct pilots with retailers and brands to further develop and scale its technology. The company’s hardware, including the Smartbadges worn by employees, costs around $50 per device. Augmodo currently employs 10 people but is expected to grow as it expands its operations and works with more clients in the retail industry. The technology offered by Augmodo not only improves inventory management for retailers, but also provides valuable real-time data for decision-makers at both the store level and headquarters.
Augmodo’s use of wearable tech and innovative data collection methods sets it apart from traditional inventory tracking solutions, which often rely on expensive robot scanners. By leveraging computer vision, augmented reality, and other cutting-edge technologies, Augmodo is able to provide retailers with a more cost-effective and efficient way to monitor store shelves, product availability, and overall inventory management. With a focus on addressing the significant revenue losses caused by inefficiencies and data gaps in retail operations, Augmodo is well-positioned to make a positive impact in the industry and help retailers optimize their supply chain processes.
