AI is revolutionizing the online shopping experience by offering more personalized interactions. Intelligent assistants are suggesting products, securing deals, and managing customer support. Both major retailers and smaller enterprises are harnessing AI to enhance search functionalities, optimize supply chains, and streamline checkout processes.
If AI-driven firms and their investors succeed, the future of shopping will revolve around dialogues with virtual assistants, with businesses automating various operations behind the scenes.
Based in Dubai, Qeen.ai (styled as qeen.ai) aims to bring this vision to life in the Middle East and beyond. The startup recently secured $10 million in funding to expand its platform, which offers autonomous AI agents tailored for e-commerce businesses.
Led by Prosus Ventures, a prominent e-commerce investor, this seed funding round is among the largest within the Middle East’s AI sector and the entire MENA region. The venture capital firm believes that Qeen.ai is uniquely positioned to introduce AI-enhanced automation to merchants as AI agents transform the landscape of online shopping.
The co-founders Morteza Ibrahimi (CEO), Ahmad Khwileh (CTO), and Dina Alsamhan (CBO) launched Qeen.ai after gaining extensive experience with AI at Google and DeepMind.
In a conversation with TechCrunch, Ibrahimi mentioned they found their niche in e-commerce partly by chance. All three founders had previously held roles at Google Ads, where they observed how other former colleagues successfully built thriving e-commerce ventures. With their AI expertise and background in advertising and SEO optimization, they believed they could create a powerful synergy.
Background at Google and DeepMind
E-commerce has consistently been on the rise, yet it constitutes only 15% to 20% of retail sales, with seasonal peaks. For instance, in the mature U.S. market, e-commerce accounted for just over 16% of sales last quarter, according to the U.S. Census Bureau.
Qeen.ai posits that this figure could see significant growth if e-commerce operations were executed more efficiently. They believe that achieving success in e-commerce should focus on exceptional products and operational performance rather than merely manipulating advertising systems. This insight inspired them to build a platform that empowers online sellers to scale without being heavily reliant on advertising.
The global e-commerce sector is experiencing rapid growth, fueled by evolving consumer habits, digital payment advancements, and enhanced logistics. In the MENA region, e-commerce is projected to reach $50 billion by 2025, with Saudi Arabia and the UAE paving the way for this expansion.
To capitalize on this trend, Qeen.ai is developing AI-driven marketing agents specifically tailored for e-commerce firms across MENA. These fully automated agents manage content development, marketing strategies, and conversational sales, enabling small and medium-sized businesses to compete without the need for costly agencies or extensive advertising expertise.
In contrast to conventional solutions, Qeen’s AI continuously adapts from consumer interactions utilizing its proprietary RL-UI technology, enhancing marketing tactics in real-time to yield optimal results.
Transitioning from Google Ads to AI-Driven E-Commerce
While AI-centered sales and support tools often deal with high turnover rates as companies change platforms, Qeen.ai reports higher retention rates within e-commerce and marketing sectors. Ibrahimi attributes this to the profound integration of Qeen.ai’s AI agents into merchants’ daily operations, transforming them into indispensable components of their workflow.
A prominent feature enhancing user engagement is dynamic text personalization, which modifies content in reaction to user activity and device type. For instance, an iPhone user might receive product information in concise bullet points for easier reading, while a laptop user sees more detailed paragraphs.
Since the rollout of its Dynamic Content agent in Q2 2024, Qeen.ai has engaged over 15 million users, generated 1 million SKU descriptions, and aided merchants in boosting sales by 30%, as per the company’s claims.
“We collaborated with a client to enhance their content and SEO. Following the integration of our AI plugins, their search volume surged by 40%, and their Google rank improved from 22 to 18 — all without any manual input. The entire process was fully autonomous,” Ibrahimi noted as he described another instance of Qeen.ai’s AI capabilities excelling.
Qeen.ai operates on a subscription model that features value-based pricing, which is gaining momentum within AI services. At present, Qeen.ai earns revenue through two subscription tiers: content automation, where businesses are charged per active SKU—approximately $0.10 to $0.20 per SKU per month—and its AI marketing agent charges based on interaction volume.
Ibrahimi chose not to reveal the exact number of businesses leveraging Qeen.ai or specifics regarding revenue growth. However, notable clients include Dubai Store, 6th Street, and Jumia.
Standing Out Through Talent
Ibrahimi departed from DeepMind in early 2023 to co-found the company. In that same year, the startup raised a $2 million pre-seed round before launching its product in June 2024. With the recent $10 million seed funding, Qeen.ai’s total funding has reached $12 million in less than a year.
As AI-driven marketing agents gain ground worldwide, numerous startups, particularly in the U.S. and Europe, are entering this field. Competitors like YC-backed Unusual and Rankai are tackling similar issues, but how does Qeen.ai differentiate itself?
Primarily, while many of these AI startups focus on developed markets, Qeen.ai is emphasizing the Middle East first—a region significantly underserved by AI-driven marketing automation tools. According to Ibrahimi, Qeen.ai aims to support small businesses throughout MENA, establish a solid presence, and subsequently expand on a global scale.
The startup possesses deep tech expertise and access to a robust talent pool, providing it with a competitive advantage over newcomers, the CEO stated. Two co-founders earned their PhDs in AI over a decade ago, well before AI became prevalent in various sectors. Ibrahimi himself previously led a research team at DeepMind focused on self-learning, goal-oriented AI agents—the same technology now utilized by Qeen.ai.
“One of the most exciting aspects we’ve observed is the caliber of AI talent available here,” remarked Ibrahimi. “We’ve attracted exceptional talent from both local and international backgrounds—individuals have relocated from the Bay Area, Europe, and the U.K. to join us in building something impactful.”
Currently, Qeen.ai employs over 25 individuals across the UAE and Jordan.
The recent seed funding will facilitate Qeen.ai’s growth strategy, aimed at expanding its AI platform, scaling its team, and attracting additional clients. Wamda Capital, 10X Founders Fund, and Dara Holdings are among the other investors participating in this round.
Compiled by Techarena.au.
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