Ex-Spotify team raises $10M seed for e-commerce behaviour engine Malachyte
What's the deal? MalachyteDealroom has a profile for this one. Try Dealroom →, a behaviour intelligence company, has raised a $10 million seed round co-led by Bessemer Venture Partners and Gradient VenturesDealroom has a profile for this one. Try Dealroom →, with HarpoonDealroom has a profile for this one. Try Dealroom → participating. The company was founded by CEO Sidd Motwani, chief technology officer Ian Anderson, and chief operating officer Shivaditya Sinha — the team behind technology that powers more than 90% of Spotify's recommendations across more than 800 million users.
What's next? Malachyte is bringing its recommendation technology to retailers and e-commerce brands. Its system uses two-headed vector AI to read shopper preference and intent from behaviour rather than logins or cookies, adapting in real time even for first-time visitors.
Early results: The platform is live with brands including HalloweenCostumes.com, Brunt Workwear and Jordan Craig. Brunt reports an 80% lift in add-to-cart click-through rate, while Jordan Craig reports a 17% lift in new-visitor revenue per visit.
Why now? Customer acquisition costs rose roughly 40% between 2023 and 2025, according to the source article, while many storefronts still show shoppers a generic experience. Malachyte says its platform can maintain sub-200ms latency under peak load and onboard brands in as little as seven days.
Read more: StreetInsider / PR Newswire
Image credit: Generated with Gemini
