Pittsburgh-based smart retail start-up Netail has closed a $5m seed funding round.

Netail has developed technology that lets retailers auto-identify competitors across the internet, track their assortments and availability, and optimise prices in real time.

Consumer behaviour has changed dramatically, and most purchase decisions are made online via search, marketplaces and social media. With retailers struggling to adapt, Netail’s AI technology is designed to help them succeed by attracting, converting and retaining customers in these increasingly competitive digital arenas.

Real-time data and decision-making are essential for retailers to understand how products are positioned.

Founded this year as part of Landing AI, Netail will now develop its AI technology in Pittsburgh, the home of Carnegie Mellon University and a technology hub, while retaining a presence in Palo Alto.

With customers already spanning three continents, Netail will also expand to the Apac region by opening an office in the Hong Kong Science & Technology Park.

“As shopping has been transformed, retailers need to recognise that their competitive universe has expanded a thousand-fold and, as a result, competitive pricing, features, availability and convenience are central to a daily battle to win each and every customer,” said Netail CEO Mark Chrystal. “That’s what Netail focuses on, helping retailers around the world stand out digitally against the competition.”

The round was co-led by Magarac Venture Partners (MVP), which provides early-stage venture capital to dynamic entrepreneurs and successful technology companies, and Andrew Ng’s AI Fund. Other investors include HKSTP Ventures. With AI Fund’s deep domain and international expertise, Netail is poised to help retailers win the digital consumer around the world.

“Under Mark Chrystal’s leadership, Netail has developed a compelling product that is helping retailers adapt to the rapid shifts in consumer behaviour we’ve seen in the past few years,” said Ng, CEO of Landing AI and now chairman of Netail. “To help win and retain the modern consumer, many of whom now make online and offline purchases using online search and marketplaces, Netail’s analytics deliver deep customer and market visibility, and provide data to directly help retailers optimise key decisions in assortment, buying, merchandising and pricing.”

This latest round of funding will be used to enhance current product offerings and expand the team of retail, AI and software engineers. In addition, Netail will leverage MVP’s deep midwest connections to win customers, recruit talent and attract partners.

Netail’s funding comes at a time when US retail ecommerce sales are expected to top $7.9tn in 2026, according to Statista. Last year, retail sales in the USA alone were valued at $6.58tn. Today, ecommerce sales account for over 14 per cent of all retail sales in the USA and are forecast to rise to nearly 22 per cent by 2025.

“Netail is uniquely positioned to tackle today’s retail landscape with the team’s extensive background in AI and understanding consume r behaviour,” said Jay Katarincic, partner at MVP. “We are thrilled to partner with Mark and Andrew on this next stage of the company.”

Netail provides technology that helps retailers see their market from a customer perspective, and the thousands of alternative shopping options that are available through online shopping and search. Netail scans the web and auto-identifies competitive products, providing real-time competitive intelligence for pricing and assortment decisions.

Using business rules and AI-based optimisation, it can help retailers attract and convert more customers, without sacrificing brand values.