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Seattle-based startup Augmodo has raised $5.3 million in seed funding on a funding round that closed in October 2024, setting the stage for a global rollout of its SmartBadge technology. While other artificial intelligence (AI) solutions in retail often focus on automation and data, Augmodo is transforming store associates into empowered, data-driven decision-makers.
The funding round was led by Lerer Hippeau, alongside investors like Dunnhumby Ventures, NewFare Partners, and Simple Food Ventures. This capital will fuel Augmodo’s mission to launch several pilot programs globally throughout 2024 and will fund its needs into 2026.
Empowering Retail Associates
Powered by Spatial AI, SmartBadges are worn by workers, enabling them to track store inventory and receive real-time task recommendations while completing their usual duties. The company claimed its tech would reduce 11.7% of lost revenue caused by store inefficiencies, as exemplified by the projected $1.77 trillion revenue loss globally last year.
“Artificial intelligence is already changing retail, and new advances in AR and spatial computing are about to completely transform the physical world of shopping as we know it,” Ross Finman, Augmodo’s founder and CEO, said. “We’re deploying our technology across the world’s most innovative retailers… making store associates even more valuable to their employers.”
This approach distinguishes Augmodo from other retail tech innovations that often sideline human workers. By providing retail associates with assistance, the goal is to make them more efficient—not obsolete.
“Our retail associates are our best assets, and they have critical job responsibilities on store floors, such as selecting e-commerce orders, stocking shelves, updating promotions, and assisting customers.” Mark Finocchiaro, managing partner at Chemist Warehouse, emphasized this.
Finman noted that real-time, accurate inventory data is often a pain point for retailers, particularly when trying to meet the demands of both in-store and online customers. The SmartBadges help solve this problem by creating a live 3D map of the store that tracks product availability and planogram compliance. Retail executives and brand partners can then access these insights remotely, saving them time and costly site visits.
“Instead of traveling endlessly to store locations, or viewing week- or month-old data…it’s a source of truth for what’s really happening at the shelf, all in real-time,” Finocchiaro said.
Retail Efficiency with AI
With retail industries worldwide facing high turnover rates and increasing pressure to improve customer experience, tools like Augmodo’s SmartBadges could improve both job satisfaction and operational efficiency. By reducing customer frustrations caused by out-of-stock items, this technology aims to create a seamless experience for both employees and shoppers.
“We’re thrilled to partner with Augmodo as they bring spatial computing to retail at scale and modernize the labor workforce,” Isabelle Phelps, a partner at Lerer Hippeau, commented. “Augmodo’s system can be implemented in retail stores in less than 20 minutes, costs 100x less than alternatives, and requires no operational changes for managers and associates.”
As Augmodo prepares for its 2024 pilots, the $5.3 million funding will support a vision that enhances retail operations while valuing the role of store associates. With strong backing from investors and growing interest from retailers worldwide, Augmodo is well-positioned to lead the next wave of AI-driven retail innovations.
