AI Agents for E-commerce Startup Raises $10M Seed Funding

The Transformation of Online Shopping Through Artificial Intelligence

AI is fundamentally altering the landscape of online retail, leading to increasingly personalized shopping journeys for consumers. Intelligent virtual assistants are now capable of offering product suggestions, securing favorable prices, and managing customer support interactions.

Both large-scale retailers and smaller enterprises are actively integrating AI technologies to enhance functionalities such as search capabilities, streamline supply chains, and optimize the checkout process.

Qeen.ai: Pioneering AI-Powered E-commerce in the Middle East

The vision of AI companies, backed by substantial investment, is to shift the focus of online shopping towards conversational interactions with AI assistants. This paradigm envisions businesses automating their operational processes in the background.

Qeen.ai, a company headquartered in Dubai (and branded as qeen.ai), is dedicated to realizing this vision throughout the Middle East and internationally.

The startup has successfully secured $10 million in funding to expand its platform, which delivers autonomous AI agents specifically designed for e-commerce businesses.

Significant Investment Signals Confidence in Qeen.ai

Prosus Ventures, a prominent investor in the e-commerce sector, spearheaded the seed funding round. This investment represents one of the largest of its kind not only within the Middle East’s AI industry but also across the broader MENA region.

The venture capital firm expresses strong confidence in Qeen.ai’s potential to introduce AI-driven automation to merchants as AI agents continue to redefine online marketplaces.

The Founding Team's Expertise

Qeen.ai was founded by Morteza Ibrahimi (CEO), Ahmad Khwileh (CTO), and Dina Alsamhan (CBO), all of whom possess extensive experience in AI development.

Prior to establishing Qeen.ai, the founders spent several years contributing to AI initiatives at leading technology companies, including Google and DeepMind.

In a recent interview with TechCrunch, Ibrahimi explained that their focus on e-commerce was partially driven by opportunity. Having previously worked at Google Ads, they observed the success of former colleagues who had launched thriving e-commerce businesses.

Leveraging their combined AI expertise, alongside a strong understanding of advertising and SEO optimization, the team believes they are uniquely positioned for success.

The Landscape of E-commerce and the Rise of Qeen.ai

While consistently expanding over time, e-commerce currently represents approximately 15% to 20% of total retail sales.

Even in established markets like the United States, this figure stood at just over 16% in the most recent quarter, according to data from the U.S. Census Bureau.

Qeen.ai operates on the principle that this percentage has the potential to increase significantly through improvements in e-commerce operational processes.

The company believes that success within the e-commerce sector should be fundamentally driven by superior products and streamlined efficiency, rather than solely by skillful manipulation of advertising platforms.

Qeen.ai’s Approach to E-commerce Growth

This core belief prompted the development of a platform specifically designed to facilitate growth for e-commerce sellers, minimizing their dependence on advertising as a primary growth strategy.

The global e-commerce market is experiencing rapid expansion, fueled by evolving consumer habits, the increasing adoption of digital payment methods, and advancements in logistical capabilities.

Within the MENA region, the market is projected to reach $50 billion by 2025, with Saudi Arabia and the UAE at the forefront of this growth.

AI-Powered Marketing Agents for MENA E-commerce

Qeen.ai is capitalizing on this surge by creating AI-driven marketing agents tailored for e-commerce businesses operating within the MENA region.

These agents are designed for full automation, managing tasks such as content generation, marketing execution, and conversational sales interactions.

This allows small and medium-sized merchants to effectively compete without the need for costly agencies or specialized advertising knowledge.

Qeen.ai differentiates itself through its AI’s continuous learning process, utilizing proprietary RL-UI technology to analyze consumer interactions.

This real-time refinement of marketing strategies leads to improved performance and enhanced results.

Key Features of Qeen.ai’s Technology

• Automated Content Creation: The platform generates marketing materials without manual intervention.
• Real-time Optimization: Marketing strategies are adjusted based on ongoing consumer feedback.
• Conversational Sales: AI agents engage customers in direct sales interactions.
• RL-UI Technology: A proprietary system for continuous learning and improvement.

The Evolution from Google Ads to AI-Powered E-commerce Solutions

Despite the challenges of high churn often experienced with AI-driven sales and customer support systems, Qeen.ai reports greater customer loyalty within the e-commerce and marketing sectors. This sustained engagement, according to Ibrahimi, stems from the profound integration of Qeen.ai’s AI agents into the everyday processes of merchants.

Rather than functioning as easily substitutable tools, these agents become integral to daily operations. A significant factor in fostering this engagement is dynamic text personalization.

This capability tailors content delivery to individual user behavior and the specific device being utilized. For instance, users accessing the platform via iPhone may encounter product information presented in concise bullet points, optimized for quick consumption.

Conversely, laptop users receive more comprehensive product details formatted as detailed paragraphs. Since the introduction of its Dynamic Content agent in the second quarter of 2024, Qeen.ai has interacted with over 15 million users.

Furthermore, the platform has generated 1 million unique SKU descriptions and facilitated a reported 30% increase in sales for its merchant base. Qeen.ai’s AI capabilities have demonstrably impacted business outcomes.

Ibrahimi highlighted a specific case study: “We collaborated with a client to refine their content and SEO strategy. Following the implementation of our AI plugins, their search volume rose by 40%, and their Google ranking improved from position 22 to 18 – all without any manual intervention.”

This entire optimization process was conducted autonomously. Qeen.ai operates on a subscription model, embracing value-based pricing, a prevalent trend in the AI service landscape.

Currently, revenue is generated through two distinct subscription tiers. The first is content automation, priced per active SKU, typically ranging from $0.10 to $0.20 monthly. The second is the AI marketing agent, with pricing determined by interaction volume.

Qeen.ai’s Client Base and Financial Details

Ibrahimi refrained from disclosing the precise number of businesses currently utilizing Qeen.ai, as well as specific revenue growth figures. However, the company boasts a portfolio of notable clients.

These include prominent organizations such as Dubai Store, 6th Street, and Jumia. These partnerships underscore Qeen.ai’s growing influence in the e-commerce sector.

• Key Feature: Dynamic text personalization adapts content to user behavior.
• Impact: 30% increase in sales for merchants.
• SEO Improvement: 40% increase in search volume for clients.

Distinguishing Itself Through Expertise

Ibrahimi departed from DeepMind in early 2023 to establish a new venture. The company subsequently secured $2 million in pre-seed funding that same year, preceding the launch of its initial product in June 2024.

With the recent completion of a $10 million seed round, Qeen.ai’s total funding now reaches $12 million, achieved within a single year.

The Rise of AI Marketing Agents and Competitive Landscape

AI-driven marketing agents have experienced increasing adoption globally, leading to the emergence of numerous startups, particularly within the U.S. and European markets.

Companies such as Unusual and Rankai, both backed by Y Combinator, are addressing comparable issues. However, Qeen.ai differentiates itself through a unique strategic approach.

Focus on the Middle East

Unlike many AI startups concentrating on established markets, Qeen.ai is prioritizing the Middle East as its initial target region.

This area remains significantly under-served by AI-powered marketing automation solutions. Ibrahimi explains that Qeen.ai intends to initially serve small businesses throughout the MENA region, building a robust presence before expanding its operations internationally.

A Foundation of Deep Tech and Skilled Personnel

Qeen.ai benefits from substantial deep tech expertise and access to a highly qualified talent pool, providing a competitive advantage.

Two of the company’s co-founders hold PhDs in AI, earned more than a decade ago, predating the widespread adoption of the technology.

Ibrahimi’s prior experience leading a DeepMind research team focused on self-learning, goal-oriented AI agents – the very technology underpinning Qeen.ai – further strengthens this foundation.

Attracting Top Talent

“The caliber of AI talent available in this region is truly remarkable,” Ibrahimi stated.

“We have successfully recruited exceptional individuals both locally and from abroad, with professionals relocating from the Bay Area, Europe, and the U.K. to contribute to our work.”

Growth and Expansion Plans

Currently, Qeen.ai has a team exceeding 25 employees distributed across the UAE and Jordan.

The newly acquired seed funding will be allocated to support the company’s growth initiatives, including the enhancement of its AI platform, team expansion, and customer acquisition.

Investors in this round include Wamda Capital, 10X Founders Fund, and Dara Holdings.