Data and applied AI solutions company Spatialedge has announced the closing of R60 million in funding from the Hlayisani Growth Fund, marking a significant milestone in its mission to transform the retail industry.
This South African advanced technology business, which was started in 2017, currently operates out of Stellenbosch. It enables companies to build and operationalise rapid and robust machine-learning solutions to deliver improved business value faster through its suite of decision tools and team of expert engineers that specialise in integrating the solutions into core business systems.
The company has since experienced exponential growth, surpassing R300 million in revenue and has established a proven track record of credibility and success with many of Africa’s largest multinational enterprises.
“We have worked directly with our customers for seven years, researching, developing and delivering cutting-edge, tailored solutions that solve real-world business problems,” explained Retief Gerber, CEO of Spatialedge. “With this recent investment boost we are now able to accelerate the process of releasing these solutions into the market and make them accessible to more customers.”
The capital will enable the business to expand its research and development efforts and enhance its product line-up, he added. This will further solidify its position as a key player in the transformation of both the retail and the financial sectors through the launch of innovative technology solutions.
“Our portfolio of products is years in the making and has been meticulously crafted and refined through extensive real-world application,” Gerber said. “This hands-on experience has not only proven the effectiveness of our technologies but has also allowed for continuous improvement based on direct feedback and ever-evolving market needs.”
The progressive AI solutions developed by the business are all focused on optimising operational decision-making in enterprise, Gerberg related. These include optimal pricing of retail products, capital allocation, labour scheduling, markdown optimisation and much more.
“These solutions are underpinned by an incredible delivery team, and a core platform that accelerates the development of machine learning models and streamlines the process of promoting these models to a production environment,” Gerber shared.
One such testament to Spatialedge’s impact comes from The Pepkor Group.
Said Jason Peisl, group CIO at Pepkor: “Pepkor has been investing in advanced analytics and AI solutions since 2017, and have seen significant improvements across supply chain, logistics, pricing, expansion and marketing. Spatialedge has been a crucial part of our analytics and AI journey. We are excited to continue our partnership with Spatialedge and leverage the acceleration their technology and services enable. Effective AI is becoming a critical component of business success, and we strive to continue to be the AI leaders in retail.”
The Hlayisani Growth Fund is a South African fund focused on investing in high-growth, high-impact African technology companies. The fund is not aimed at start-ups, but rather at growth-stage firms that have proven their business model and are now looking to expand locally and internationally. It aims to support businesses that demonstrate a potential for industry leadership and sustainable innovation.
As the R700 Million Hlayisani Venture Fund II that launched in the first quester of 2023 approaches its closing stage, the Hlayisani Growth Fund’s R60 million investment into Spatialedge signifies a strong belief in the company’s potential to continue leading the charge in retail technology innovation.
Mathew Palin, partner at the Hlayisani Growth Fund, remarked: “Spatialedge exemplifies the type of forward-thinking and impactful companies we aim to support with the Hlayisani Venture Fund II. Their proven track record with major brands and commitment to advancing the big data and AI landscape aligns perfectly with our investment philosophy. We are confident Spatialedge is well-positioned to continue to have a significant impact in the industry. We look forward to supporting them on their journey and helping them reach new heights.”
“For the retail sector to stay ahead of the curve it means keeping track of emerging tech trends while fully embracing innovative technologies, and our business makes this simpler to achieve,” concludes Gerber. “Local innovation plays a crucial role in driving technological advancements, and the potential benefits of using AI powered solutions in the retail sector cannot be overstated.”
