Spangle AI has raised $15 million in Series A funding to expand its agentic infrastructure platform that connects AI-led product discovery to real-time conversion. The round was led by NewRoad Capital Partners, with participation from Madrona, DNX Ventures, Streamlined Ventures, and strategic angel investors. The investment brings the company's total funding to $21 million.
The platform already works with brands including REVOLVE, Steve Madden, and Alexander Wang, delivering conversion lifts up to 50% and doubling return on ad spend for some clients. These nine enterprise partners collectively generate $3.8 billion in online sales and have driven Spangle's revenue to quadruple from Q3 to Q4 2024.
Shopping decisions increasingly form on AI search engines, social platforms, and recommendation systems before customers visit brand websites. This creates a challenge for traditional e-commerce technology, which wasn't designed to handle unified experiences across multiple touchpoints.
"Having built unified AI systems at Amazon, including Alexa and customer service workflow automation at massive scale, we saw what's broken in traditional e-commerce stacks: fragmented data, slow feedback cycles, no intelligence layer tying it together," said Fei Wang, CTO of Spangle and former Amazon Principal Engineer who led Alexa and Customer Service Technologies.
The company bridges this gap by connecting upstream intent signals to real-time conversion actions. According to CEO Maju Kuruvilla, "Spangle bridges that gap. We're building infrastructure where AI-driven discovery and on-site execution operate as one intelligence layer."
In its first nine months, Spangle achieved 57% average month-over-month growth in traffic flowing through its platform. The technology adapts to individual shoppers in real time while maintaining brand consistency.
REVOLVE saw a 60% improvement in return on ad spend and a 50% lift in revenue per visit after implementing Spangle. "As a data-driven, innovation-focused retailer, we're always looking for ways to elevate the customer journey and maximize conversion," said Ryan Pabelona, Vice President of Performance Marketing at REVOLVE. "The adaptive nature of Spangle AI meant we could meet shoppers in the moment, all while staying on-brand."
Steve Madden reported a 41% increase in add-to-cart rates and a 20% boost in overall conversion. Colleen Waters, VP of Commerce at Steve Madden, noted that the platform's intelligence layer is specifically tailored to their brand rather than offering generic AI solutions.
"Traditional commerce stacks were not designed for unified experiences," said Wang, referring to his previous role as CTO of Saks Off Fifth. "LLMs and agentic systems have made this level of integration achievable for the first time. Two years ago, this wasn't economically or technically viable. Today, with Spangle, it is."
Spangle makes brand commerce systems agentic through ProductGPT, a commerce-specific reasoning engine customized for each brand. The system learns product catalogs, advertising context, shopper intent patterns, and conversion drivers. Seller Agents then execute actions in real time, feeding insights back to ProductGPT to continuously improve the infrastructure layer.
Every interaction strengthens the system's intelligence. This creates what investors call a "data moat" that deepens with scale while delivering measurable revenue outcomes.
"Spangle's intelligence truly gets smarter with every session and interaction," said Rickie Koo, Partner at DNX Ventures. "Many attempt this, but it's rare to see a data moat deepen this efficiently and translate into revenue outcomes this quickly."
Dave Finnegan, Strategic Advisor at NewRoad Capital Partners and former CXO at Orvis and CIO at Build-A-Bear, emphasized the operational validation behind the investment decision. "Spangle's customers aren't just expanding, they're advocates. That's the demand-driven traction we look for. As operators and technologists who've run retail businesses, we know point solutions won't capture the agentic commerce opportunity."
Scott Jacobson, Managing Director at Madrona, which led Spangle's seed round and participated in the Series A, focused on the company's approach to a specific problem. "When we led Spangle's seed round, we saw a team tackling commerce's most expensive inefficiency: paid traffic conversion. There's no shortage of AI hype, but Spangle stands apart for its agentic solution already delivering major performance gains for global brands."
The combination of proven metrics with tier-one brand adoption gave investors confidence that the technology solves a real problem rather than chasing trends.
Spangle will allocate the funding toward accelerating R&D, advancing its AI models, and expanding the agentic infrastructure. The company also plans to scale its engineering team to stay ahead as the market continues to evolve rapidly.
The focus remains on building technology that helps brands capture value from AI-driven traffic as platforms like ChatGPT Shopping, Google AI Overviews, and Meta continue to change consumer behavior patterns.
"As commerce shifts toward agentic AI, partnering with Spangle keeps us at the cutting edge and helps us reimagine how we leverage AI across the customer journey," said Colleen Waters from Steve Madden. "We appreciate that Spangle's intelligence layer is tailored specifically for Steve Madden. The models and agents reflect our brand and get smarter over time versus generic AI solutions."
Spangle AI was founded in 2024 by serial entrepreneurs with over 30 years of combined experience scaling AI and commerce systems at Amazon, Saks, and Gap. The company has been recognized by Business of Fashion's AI Startups to Watch, received NRF VIP Awards for Best AI-Driven Marketing Solution, and was selected for the 2025 New York Fashion Tech Lab.
