AIPERIA, the Würzburg-based innovator in AI-driven demand planning for fresh food, has successfully closed a €7.5 million Series A funding round. The injection of capital from Europe's impact investor, ETF Partners, LBBW VC, and others, including Earlybird Venture Capital, aims to fuel AIPERIA's global growth and technological enhancement.
Fresh Food Forecasting: A Sustainable Quest
Europe faces a pressing challenge with food waste, a concern that AIPERIA is addressing head-on. With inflation impacting supplier margins, the fresh food sector is in dire need of efficient planning. AIPERIA's AI platform is poised to address this by offering an optimized solution that reduces waste and bolsters profitability.
The company's CEO, Franz Seubert, acknowledges AIPERIA's readiness to penetrate international markets. Their technology, which marries deep learning and meticulous data analysis, has the potential to transform fresh food ordering, reflecting a commitment to sustainability and operational excellence.
Franz Seubert, AIPERIA CEO and co-founder added: “Over the past three years, we have established ourselves as the leading planning solution for fresh food in the German-speaking market. We are now ready to roll out the technology in new and international markets to further increase our vital, sustainable impact. With this investment, we now have the necessary resources and are looking forward to the journey ahead.”
AIPERIA's platform stands out. It integrates over 150 external factors, including weather and holidays, into demand planning. Their approach diverges from traditional algorithms, providing a fresh perspective on inventory management. This technology enables a 30% reduction in waste, a 4% increase in sales, and a 90% decrease in planning time for their clients.
Since its founding in 2021, AIPERIA has demonstrated remarkable progress. The customer base growth—from about 300 stores to over 1,800 within a year—exemplifies their traction within the German-speaking market and the wider industry's interest in their unique solution.
Fabrice Bienfait from ETF Partners acknowledges AIPERIA's crucial role in addressing food waste and anticipates further expansion and success in the coming years.
Fabrice Bienfait, Senior Partner, ETF Partners: “We are thrilled to be backing the dynamic and groundbreaking team at AIPERIA. Their commitment to addressing the critical challenge of food waste head-on is not only admirable but essential. With a swiftly expanding user base, AIPERIA has demonstrated remarkable potential, and we expect to see continued growth in 2024 and beyond. This successful funding round marks a pivotal moment, and we’re eager to witness the scale of impact their innovative solution will have. It’s about transforming supply chains for the better, boosting efficiency, and elevating profits for retailers and suppliers alike.”
Navigating the Market: Competition, Differentiation and Growth
AIPERIA operates in a competitive space with several players in the fresh food demand planning arena. However, their proprietary optimization algorithms, developed through extensive research, set them apart by effectively navigating the unpredictability inherent to fresh food demand.
Looking beyond the realm of fresh and ultra-fresh food products, AIPERIA aspires to broaden its AI platform to encompass other perishable goods, driving towards a more predictive and efficient economy.
With the latest round of funding, AIPERIA is now set to strengthen its position in the fresh food industry. Leveraging AI for demand planning is a strategic move toward sustainable production, minimizing food waste at the very start of the supply chain. This not only aligns with political pressures to cut food waste across Europe but also serves the dual purpose of improving profit margins amid rising inflation rates.
The transition to AI-aided demand planning does come with its hurdles. The food supply chain is often fragmented, and fostering collaboration among stakeholders is critical to maximizing the impact of such innovations. AIPERIA’s technology is designed to bridge data gaps and align with evolving market demands, placing them at the forefront of this transformation.
This funding signifies a crucial phase in AIPERIA's evolution. The company's solution offers a promising avenue for enhancing efficiency and sustainability within the fresh food industry. AIPERIA's continued success will hinge on its ability to scale its solutions, navigate a diverse market, and potentially broaden its AI platform beyond fresh food products.
With the fresh food sector grappling with the immense challenge of food waste, AIPERIA's Series A financing heralds a significant step toward a more sustainable and efficient industry. As AIPERIA ventures into new markets and advances its technology, the potential impact of its innovative solutions on reducing food waste and improving demand planning looms large, marking a substantial stride in the journey towards a more sustainable global food system.