Attraqt acquires AI search capability to capitalise on ecommerce growth


Event: Acquisition of Intellectual Property and development services from Aleph Search

Alongside a strong set of interim results showing ARR growth to £19.8m, Attraqt also announced the acquisition of Intellectual Property from Aleph Search to deliver AI capability and committed development resource over the next three years.

Kestrel supported the associated £4m placing, which provides funding to drive new customer growth.

The acquisition enhances Attraqt’s ecommerce search capability, accelerating its product roadmap and cementing a competitive advantage over peers.

Kestrel Insight

Attraqt has grown its market share in the ecommerce market, and more recently enjoyed success from its existing partnership with Aleph Search. This transaction secures Attraqt’s exclusive use of Aleph ecommerce search technology and should pave the way to continued ARR growth.

Investors will be familiar with the provision of search capabilities by ecommerce website operators, designed to help customers find products to buy. The ability of these search functions to interpret the user’s search requirements and return appropriate products resulting in a sale can be poor.

Google has led the way in ‘semantic’ search – taking a string of text entered to a search box and bringing back results appropriate to the user’s search. The results are often overlaid with an element of AI, taken from prior search histories and Google’s knowledge of the user. These Google techniques tend to return good quality search results for the user.

As a result, ecommerce customers now enter increasingly complex text strings into ecommerce search boxes and expect a ‘Google quality’ response. However, this is not always the case. Our own research shows that customers may receive anything from a nil search response through to a return of unrelated items.

The better the quality of the search results relative to the user’s search, then the better the conversion rate to sales. The Aleph technology acquisition allows Attraqt to offer a solution to internet search problems and materially improve customer conversion rates. ARR growth should accelerate as a result.

 


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