Hue Beauty Inc., an artificial intelligence-powered platform for user-generated video content startups, today announced it has raised $4.5 million in new funding to expand its reach and develop new partnerships.

Founded in 2021, Hue helps brands and retailers integrate TikTok-style shoppable videos onto their e-commerce websites to give customers the confidence to add them to their cart. The company’s AI-powered software-as-a-service platform combats low conversion rates on e-commerce sites by providing brands with personalized, user-generated video content that resonates with consumers. individual buyers.

The platform helps brands integrate shoppable user-generated videos directly into their e-commerce websites. Through the use of authentic videos from real users, Hue claims to boost engagement by helping consumers view products on people with similar attributes, such as skin tone or hair type.

Hue’s technology also allows shoppers to filter and view personalized content, increasing both shopping confidence and time spent on sites. The company says its clients, such as Credo Beauty LLC and Tatcha LLC, have reported significant increases in conversion rates and return on ad spend.

The Company’s platform also offers comprehensive content integration and usage across digital channels and provides precise AI-powered shade matching for beauty products. Hue’s AI-powered platform has seen growing engagement, with more than 4.1 million users interacting with its video technology and more than 6 million videos playing through Hue integrations on customers’ websites. brands.

“Thanks to TikTok, user-generated video content has transformed the way customers shop online,” said co-founder and CEO Janvi Shah. “Yet e-commerce sites typically lack this type of authentic video content, leading to poor conversion. »

“With more than 20% of all retail purchases expected to take place online this year and the e-commerce market expected to total more than $8.1 trillion by 2026, brands must deliver video content generated by users and relevant to each individual consumer,” added Shah.

Fika Ventures and Underscore VC co-led the seed round, with participation from Sequoia Scouts, The MBA Fund, Glasswing Ventures, Courtyard Ventures, Phoenix Fund Management Ltd. and Tristan Walker’s Heirloom Fund.

Image: Hue