Spangle raises $15M to scale AI-driven e-commerce infrastructure

Seattle-based e-commerce startup Spangle has raised $15 million in a Series A round—a type of venture capital funding—bringing its total funding to $21 million. The investment values the company at $100 million. The all-equity round was led by NewRoad Capital Partners, with participation from Madrona, DNX Ventures, and Streamlined Ventures. This funding follows a $6 million seed round raised over a year ago at a $30 million pre-money valuation.

The startup aims to address shifts in how consumers discover products online, as search and social platforms increasingly influence buying decisions before shoppers reach a brand’s website. Instead of directing shoppers to static, pre-built product pages, Spangle routes traffic to a blank page that its AI fills in real time. The platform uses a proprietary model called ProductGPT to generate personalized layouts and product recommendations based on shopper signals, such as referral sources, search queries, and historical visitor behavior.

Since emerging from stealth in March of last year, Spangle has signed nine enterprise customers, including Revolve, Alexander Wang, and Steve Madden. These brands represent about $3.8 billion in combined online sales. Traffic flowing through Spangle’s platform has grown about 57% month-on-month, and the startup reported that it quadrupled its annualized revenue in the fourth quarter.

According to Spangle CEO Maju Kuruvilla, brands using the platform are seeing significant improvements in key performance metrics:

• Close to a 50% increase in revenue per visit.
• A doubling of return on ad spend—a marketing metric measuring revenue generated for every dollar spent on advertising.
• A 15% increase in average order value.

“We are future-proofing the brand,” said Maju Kuruvilla, CEO of Spangle, adding that the platform trains its AI model on each retailer’s catalog and performance data to allow shopping experiences to adapt automatically.

Enterprise customer Revolve has experienced similar results. Ryan Pabelona, Revolve’s VP of performance marketing, reported that the retailer saw about a 60% improvement in return on ad spend and a 50% increase in revenue per visit using Spangle’s software.

Spangle was founded in 2024 by Kuruvilla and CTO Fei Wang. Kuruvilla previously served as CEO of checkout company Bolt and spent more than a decade at Amazon working on large-scale commerce and AI systems. Wang is a former Amazon principal engineer who also served as CTO at Saks Off 5th. The founders are positioning Spangle as an infrastructure layer for AI-powered commerce rather than an incremental software fix. Currently, the startup operates with six full-time employees. With the new funding, Spangle plans to invest in research and development, expand its engineering team, and build out its sales organization.

Why it matters

Spangle is positioning its AI-driven commerce infrastructure as a solution for retailers to personalize shopping experiences in real-time, aiming to address the shift in how consumers discover products through AI tools and social platforms.