03
Jan

Rubikloud scores $37 million investment to bring intelligence to retail industry

TORONTO, Jan. 3, 2018 — The retail industry is one that’s rife for disruption by technology. Under intense pressure from giants like Amazon and Walmart, retailers are often stuck using legacy systems and are ill-equipped to compete using the latest tools. Rubikloud announced a $37 million investment today to help retailers attack the modernization problem with cloud tools built with artificial intelligence underpinnings.

The round was led by Intel Capital with participation from new investors Inovia Capital and OTEAF along with previous investors Horizons Ventures and Access Industries. Today’s investment brings the total to $47 million, according to the company.

Intel in particular is trying to get a foothold inside of retail where they hope to promote their Internet of Things strategy. They believe that by combining their IoT knowledge with Rubikloud’s intelligent automation and data processing, it will generate a powerful partnership. For starters, they hope to attack three areas of retail with this approach including the supply chain, the corporate front office and inside stores themselves.

Rubikloud offers a series of SaaS products including a promotions tool and a customer lifecycle manager to help retailers provide more personalized promotions and track their customers through the entire retail lifecycle. They also offer a couple of more nuts and bolts tools including RubiCore, which is designed to help companies ingest and validate data from their existing systems and move their data into Rubikloud’s proprietary data model. Finally they offer RubiOne, which is a set of machine learning tools and libraries designed to help retailers build their own machine learning applications on top of the Rubikloud data set.

The idea is to use the applications the company has provided to help retailers improve promotions and better understand their customers, while giving them the ability to build their own customized applications as well.

This appears to be a solid approach, but the company is far from alone in this space as it’s competing with giants like Adobe and a host of other startups. Regardless, investors obviously liked what they saw and have pumped in a lot of money to help in that regard.

The company plans to use the money from this round for worldwide expansion with a focus on opening offices in Europe and Asia.

Comments ( 0 )

    Leave A Comment

    Your email address will not be published. Required fields are marked *

     

    AI STARTUP RUBIKLOUD TO BE ACQUIRED BY OTTAWA-BASED KINAXIS FOR $81.4 MILLION CAD

    OTTAWA, ON, June 15, 2020 – Kinaxis® Inc. (TSX: KXS), the authority in driving agility for fast, confident decision-making in an unpredictable world, has signed a definitive agreement to acquire Toronto-based Rubikloud, a disruptive, emerging provider of AI solutions that automate supply chain prescriptive analytics and decision-making in the retail and consumer packaged goods (CPG) industries.

    Globally-recognized retailers and CPG manufacturers in the health and beauty, household and grocery segments use Rubikloud’s AI-based products today. Their offerings include demand forecasting and automation to manage and optimize trade promotions, pricing and assortment to drive product demand and dramatically improve financial results. Kinaxis will enhance RapidResponse’s demand planning capabilities with the Rubikloud offerings, anticipating initial opportunities in the company’s rapidly-growing CPG customer base and over time for other industries such as life sciences. The acquisition also offers Kinaxis a springboard into the enterprise retail industry.

    “Rubikloud has capabilities and value that we can offer our CPG customers today, leads us into the retail industry with some bellwether accounts, and adds a group of approximately 80 people to an already-impressive AI and machine learning (ML) team here at Kinaxis. Over time, this enhanced group will contribute to new and existing AI-powered capabilities across the full Kinaxis RapidResponse® platform and applications,” said John Sicard, President and CEO of Kinaxis. “This acquisition reflects the growing importance of AI and ML to power intelligent automation and augment human decision-making to better deliver on customer promises, remove waste and increase resiliency for effective risk management.”

    Rubikloud’s SaaS-based ML offerings empower retail and CPG manufacturers to transform their core operations by improving and automating complex, profit-generating decisions. Rubikloud’s proven AI capabilities and intuitive tools enable users to leverage disparate data sources to improve forecast accuracy, site-level allocations, inventory availability and promotion plans by allowing users to run boundless simulations in real time.

    “We founded Rubikloud with the belief that purpose-built AI could be used to solve some of the most complex industry problems and we have spent the last seven years building a fantastic product that receives validation from global customers every day,” said Kerry Liu, CEO, Rubikloud. “We’re excited at the prospect of joining Kinaxis, which helps us bring our innovations to a much broader customer base at a faster pace than on our own. Not only that, being two strong Canadian companies we see great cultural synergy and look forward to working on the complex problems we know RapidResponse and concurrent planning can solve for customers.”

    Terms of Agreement
    Kinaxis will acquire Rubikloud for US$60 million in an all-cash transaction that is expected to close within 60 days. Based on Rubikloud’s current revenue and expense profile, the company’s fiscal 2020 revenue and Adjusted EBITDA guidance, as reiterated in its May 6, 2020 news release, remains unchanged. The transaction is subject to customary closing conditions.

    About Kinaxis Inc. 
    Everyday volatility and uncertainty demand quick action. Kinaxis® delivers the agility to make fast, confident decisions across integrated business planning and the digital supply chain. People can plan better, live better and change the world. Trusted by innovative brands, we combine human intelligence with AI and concurrent planning to help companies plan for any future, monitor risks and opportunities and respond at the pace of change. Powered by an extensible, cloud-based platform, Kinaxis delivers industry-proven applications so everyone can know sooner, act faster and remove waste. For more Kinaxis news, follow us on LinkedIn or Twitter.