Invent Analytics, which helps retailers manage inventories and optimize prices, has raised $17 million in a Series B round led by Los Angeles-based LFX Venture Partners. Other investors include prior European Bank for Reconstruction and Development and Istanbul’s Collective Spark, both of whom invested in the Philadelphia startup’s Series A in 2022.
Founded by Prof. Gurhan Kok in 2013, Invent Analytics has so far raised $24.5 million. Men’s Wearhouse, Jos. A. Bank, Academy Sports + Outdoors, Five Below and GNC are among users of Invent Analytics’ AI-powered SaaS platform.
Inventory Or Bust?
“Inventory optimization is more crucial than ever, thanks to the many ways customers can browse, buy, and return goods in this omni-channel world,” said Kok, a tenured associate professor at Duke University.
Invent Analytics uses AI, among other technologies, to help with granular planning decisions across the supply chain. Its Phantom Stock app analyzes a retailer’s data to predict and identify inventory inaccuracies, and potentially increase sales.
“We chose to invest in Invent Analytics for its innovative AI-decisioning technology and ability to accelerate retailer planning capabilities to create direct bottom-line return on investment,” said John Seung, managing partner of LFX Venture Partners. The Los Angeles venture firm focuses on startups building supply-chain efficiencies.
Delivering Value
Kok, who earned a Ph.D. from University of Pennsylvania, contends that many retailers who still rely on historical data, assumptions, and manual processes to make inventory decisions stand to lose significant sums of money. For a company with $10 billion in annual revenue, a reliance on legacy systems could mean they lose $8 million each month.
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“The foundation of our company is built on helping large global retailers maximize profits,” Kok told Retail Merchandiser last year as Invent Analytics unveiled its Phantom Stock app. “We’ll continue to introduce innovative solutions designed to improve their bottom line behind the scenes — as well as create better shopping experiences that keep customers coming back time and time again.”
Invent Analytics has won several awards, including Women in the Supply Chain and RIS’ Top Movers and Shakers in Retail. Earlier this year, the company was declared “Return Management Innovation of the Year” in the 2024 RetailTech Breakthrough Awards for its “returns positioning” solution. By swiftly bringing returned items back to the sales floor, the solution potentially increases sales by between 25% and 50%, according to Invent Analytics.
Invent Analytics plans to use the funding to enhance capabilities of its AI-platform, strengthen strategic partnerships and broaden its team of retail experts.
