Trigo Bags $10M to Challenge Amazon's Just Walk Out Tech

AI-Powered Checkout Technology Gains Momentum with New Funding

As Amazon continues to broaden the deployment of its autonomous, computer vision-driven grocery checkout systems to larger retail spaces, a competing Israeli AI startup has secured additional funding and a new strategic investment from a major customer.

Trigo's "Grab and Go" System

Trigo has developed a computer vision system encompassing both camera hardware and secure, privacy-focused software. This technology facilitates a “grab and go” shopping experience, automatically detecting selected items and processing payment as customers exit the store.

The company recently announced a $10 million funding round led by German supermarket chain REWE Group and Viola Growth. While the precise investment figure wasn’t publicly stated, PitchBook data indicates Trigo’s total funding now exceeds $100 million, building on previous Series A and B rounds totaling $87 million.

Strategic Partnerships and Expansion

Trigo’s co-founder and CEO, Michael Gabay, expressed his pride in strengthening the partnership with REWE Group, highlighting their confidence in the system’s privacy-by-design architecture.

This investment will initiate a pilot “grab and go” store in Cologne, Germany. REWE operates 3,700 stores throughout Germany, presenting significant potential for future expansion.

REWE joins Tesco as a strategic investor in Trigo, with Tesco currently trialing the technology in the United Kingdom. The system is also utilized by Shufersal, a prominent grocery chain in Israel.

REWE's Broader Tech Investments

REWE’s investment in Trigo is part of a wider strategy of technological engagement. The company has also recently partnered with Flink, a German grocery delivery startup, as well as Yamo, a healthy eating service, and Whisk, an AI-powered meal planning platform.

Christoph Eltze, executive board member at REWE Group, emphasized the importance of strategic partnerships in navigating rapid technological advancements, identifying Trigo as a leader in computer vision for smart stores.

Shifting Consumer Habits and the Future of Grocery Shopping

Consumer behavior is undergoing a significant transformation. Shopping, cooking, and eating patterns have evolved considerably over the past decade.

Founded in 1927, REWE is actively seeking collaborations with innovative companies to maintain a competitive edge in the evolving grocery landscape.

Ran Peled, Trigo’s VP of marketing, previously stated that consumers aren’t necessarily embracing grocery e-commerce willingly, but rather as a response to declining in-store experiences. Trigo aims to revitalize the brick-and-mortar experience, making supermarket visits enjoyable once again.

Competition and Market Outlook

The success of smart checkout services and the potential for market dominance remain to be seen. It’s uncertain whether a single provider will emerge, or if a diverse range of solutions will become available.

Alongside Amazon and Trigo, companies like Standard Cognition are also vying for market share. Increased competition could lead to more affordable system pricing, particularly for locations with high transaction volumes.

The optimal store size for cashierless technology is also under consideration. Juniper Research forecasts $400 billion in smart checkout transactions by 2025, but anticipates the primary focus will be on smaller grocery and convenience stores, representing a global market of 500,000 stores, with 120,000 located in Europe.