Dive Brief:
- Smart shopping cart technology developer Shopic has raised $35 million in a Series B funding round led by Qualcomm Ventures, pushing the total amount it has brought in from investors to $56 million, the Tel Aviv, Israel-based startup announced Tuesday.
- In addition to Qualcomm, participants in the investment round include Vintage Investment Partners and Clal Insurance, as well as existing Shopic investors IBI Tech Fund, Tal Ventures, Claridge Israel and Israeli supermarket chain Shufersal.
- Shopic is looking to stand out in the automated checkout space with a clip-on unit that enables standard shopping carts to identify products as shoppers select them.
Dive Insight:
Shopic faces stiff competition from a range of companies that have also developed frictionless shopping technology that lets customers skip the checkout counter while also presenting promotions as they traverse store aisles.
The company’s business model is centered around self-contained devices that use computer vision to scan products, feature a built-in screen to communicate with shoppers and handle payments. Shoppers attach Shopic’s equipment to their cart when entering a store and remove it before leaving with their purchases.
By contrast, other companies in the smart cart space, including Amazon, Instacart-owned Caper AI, Cust2Mate and Veeve, have developed full-size shopping carts that have digital capabilities built in.
Shopic, which was founded in 2015, said it plans to use the additional funding to expand its presence around the world, but did not provide further details about its growth plans. Grocers in the Americas, Europe and Israel, including what Shopic said are “some of the world’s largest supermarket chains,” are using the firm’s technology, according to the announcement.
The new investments build on $10 million in funding Shopic took in from investors last summer.
In addition to recording and charging customers for items, Shopic’s system provides grocers with inventory data and analytics about shopper behavior, the company said.
Shopic is looking to build interest in its shopping cart-oriented technology as other companies, including Amazon, invest in ceiling-based camera arrays that let shoppers simply walk out of stores with products, regardless of whether they elect to use a shopping cart. Amazon has been adding its version of the technology, known as Just Walk Out, to a growing number of Amazon Fresh supermarkets, a shift from its earlier strategy of equipping locations in the chain with smart carts.
But in a sign that it remains interested in cart-based checkout technology, Amazon recently announced plans to roll out an upgraded version of its smart cart, known as the Dash Cart, to several Whole Foods Market locations. The new unit has a larger capacity than the original, which Amazon introduced in 2020.
