EBRD Champions AI Innovation in E-Commerce with €6 Million Investment in Estonian Firm Miros

EBRD Champions AI Innovation in E-Commerce with €6 Million Investment in Estonian Firm Miros

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has led a €6 million pre-series A investment round in the Estonian company Miros, marking its first venture capital investment in Estonia. This funding, which also involves Tera Ventures and other investors, will enhance Miros’s AI-driven visual search platform for e-commerce, enabling users to find products through images rather than text. Miros aims to improve the online shopping experience, particularly for complex products, and has outperformed major search engines in product searches. The EBRD’s investment will support Miros’s product development and expansion into the US market.

(PRESS RELEASE) LONDON, 6-Nov-2024 — /EuropaWire/ — In a significant move to bolster the Estonian tech ecosystem, the European Bank for Reconstruction and Development (EBRD) has spearheaded a €6 million pre-series A investment round in Miros, a company leveraging artificial intelligence (AI) to transform e-commerce. This investment marks the EBRD’s inaugural venture capital initiative in Estonia and underscores the Bank’s commitment to supporting early and growth-stage technology firms through its EBRD Venture Capital arm.

Leading the funding round alongside Tera Ventures, the EBRD attracted contributions from existing investors, including Day One Capital and Metis Ventures, as well as notable angel investors such as former Estonian President Toomas Hendrik Ilves.

The capital raised will be pivotal for Miros, facilitating advancements in product development and aiding the company’s expansion into the US market. Based in Estonia, Miros is at the forefront of innovation with its unique AI-driven visual search platform that allows consumers to find products online using images rather than traditional text searches. By analyzing user interactions and browsing habits, Miros identifies key features and aligns them with items in the retailer’s inventory, thereby enhancing the shopping experience.

Conventional text-based search approaches often result in substantial customer loss, with online retailers losing more than 50% of potential sales due to inadequate product tagging and frustrating scrolling interfaces. Miros addresses this challenge head-on, particularly for hard-to-describe products such as fashion items and furniture. In tests conducted alongside leading search engines like Google and Algolia, Miros has demonstrated superior performance in product searches across various retailer websites.

Aziza Zakhidova, Associate Director in the EBRD’s Venture Capital team, expressed enthusiasm about the partnership, stating, “We are excited to collaborate with Miros as it enhances its AI-based visual search solution for e-commerce. The product not only offers an intuitive shopping experience for consumers but also delivers tangible returns for retailers worldwide. This investment highlights the innovative spirit emerging from the Estonian tech landscape.”

Heikki Haldre, co-founder and CEO of Miros, shared his vision for the platform: “The abundance of products isn’t the issue; it’s locating them that poses a challenge. We’ve all experienced the frustration of endlessly scrolling online in search of the perfect item. At Miros, we’re crafting a new online shopping paradigm, enabling users to find products in under 60 seconds—even when words fail to describe the complexity of what they’re seeking. The experience feels almost magical. Why would anyone choose to shop elsewhere and waste time searching?”

EBRD Venture Capital, with a fund size of €250 million, is dedicated to investing in early and growth-stage technology companies led by talented teams from Central and Eastern Europe and beyond. This press release was authored to highlight the EBRD’s strategic investment in Miros and its implications for the future of e-commerce.

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SOURCE: EBRD