Syrup Tech Inc., a startup specializing in AI tools for fashion retailers, has successfully raised $17.5 million in a funding round led by Accel. The company’s software leverages AI technology to address the issue of waste in the retail industry, which is expected to be particularly problematic this holiday season after the success of Cyber Monday. Investors in Syrup Tech include Google’s Gradient Ventures and 1984 Ventures. This funding round has brought Syrup’s valuation close to $100 million.

James Theuerkauf, co-founder and CEO of Syrup Tech, highlighted the extreme wastefulness of the retail industry. He emphasized that their software can help retailers avoid issues like excess inventory or stock shortages by outperforming the baseline within weeks.

Established in 2020, Syrup Tech was founded by individuals who recognized the challenges faced by retailers in adapting their inventory needs during the pandemic. Lockdowns led to significant shifts in consumer shopping habits, causing disruptions in retail supply chains. Based in New York, the company plans to expand its workforce from around 30 employees to 70 by the end of next year. So far, Syrup Tech has raised a total of approximately $25 million in funding.

Syrup Tech’s clients include popular fashion brands such as Reformation and Faherty Brand. Ivan Tchakarov, the COO of Reformation Inc., praised the impact of Syrup’s software on stock allocation in their stores, highlighting its ability to enhance distribution and warehouse efficiency. Tchakarov emphasized the importance of predicting demand at a specific level to optimize inventory management. He commended Syrup Tech for significantly increasing the availability of items in-store without acquiring additional inventory.

With the latest funding, Syrup Tech is well-positioned to continue developing its AI tools, driving innovation in the retail industry and reducing waste.

Useful links:
Syrup Tech Official Website
Accel Ventures Official Website