Ai Palette, a leading AI-powered consumer data platform in the Consumer Packaged Goods (CPG) industry, has successfully extended its Series A1 funding round, securing an additional $1.45 million from InnoVen Capital. This brings their total funding to over $7.7 million. The new capital will be used to enhance their Generative AI product stack for the CPG sector and bolster their presence in the Americas.
The fresh funding underscores the scalability and effectiveness of Ai Palette's AI-driven approach in the CPG industry. Their solutions have revolutionized product development across sub-sectors such as bakery, beverages, and personal care by providing real-time trend analysis and consumer insights.
Founded in 2018 by ex-Givaudan executive Somsubhra Gan Choudhuri (CEO) and big data expert Himanshu Upreti, Ai Palette has developed an end-to-end platform enabling clients to identify trends, generate new product concepts, and screen them at the click of a button, aided by a chatbot called FoodGPT. This platform is trusted by industry giants like Nestlé, Symrise, ADM, Kellogg, Mondelēz International, Diageo, Cargill, and Himalaya Wellness.
Core Components of Ai Palette's Platform
Foresight Engine: Uses AI to analyze images and text from various sources, identifying unmet consumer needs and emerging trends.
Concept Genie: A generative AI tool that creates new product concepts based on data from the Foresight Engine.
Screen Winner: A concept screening tool to evaluate the viability of new product ideas in specific categories or markets.
These tools significantly speed up and de-risk the innovation process, enabling companies to identify market needs and also to create, and screen concepts rapidly.
FoodGPT and Advanced AI Capabilities
Ai Palette’s generative AI chatbot, FoodGPT, launched in late 2023, provides additional insights by incorporating clients’ proprietary data along with internet data. The platform’s ability to deliver real-time insights from over 61 billion data points empowers businesses to capitalize on nuanced consumer trends, enhancing success rates and revenue growth.
Ai Palette's technology has been instrumental for various large CPG companies. For example, a leading alcoholic beverages company used the platform to develop new vodka RTD drink flavors, and Cargill leveraged Ai Palette to assess the viability of entering the plant-based yogurt market in Indonesia. During the COVID-19 pandemic, Kellogg used Ai Palette to identify trending recipes and launch a social media campaign in Southeast Asia.
Competitors in AI and CPG Innovation
Tastewise: Uses AI to analyze food trends, recently raising $17 million in Series A funding.
FoodPairing: Focuses on flavor insights and product development through AI, recently raised $6 million to expand its capabilities.
Analytical Flavor Systems: Employs AI to predict consumer preferences and flavor trends, securing $4 million in recent funding.
NotCo: Uses AI to create plant-based food products, raising $235 million in its latest Series D funding.
The Growing Market
The AI and digital twin market in the food and CPG sector is experiencing rapid growth, driven by the need for data-driven insights to understand evolving consumer preferences. These technologies help brands innovate and stay competitive in a dynamic market landscape.
Ai Palette's recent funding highlights the increasing importance of AI in the CPG industry, and with continued investment and technological advancements, it is poised to lead the way in AI-powered consumer insights and product innovation.
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