Local e-commerce platform Lula Commerce raised millions despite a challenging fundraising environment.
Philly-based Lula Commerce raised an $8 million Series A today, which will support the company as it builds more offerings and expands its team, cofounder Adit Gupta told Technical.ly.
“The money will be used for building additional products that will be used across our fleet of stores and ramping efforts to bring on several thousand more retail partners,” Gupta said.
The company also plans to hire in its engineering, sales, product and customer success teams, according to a press release.
SEMCAP AI, an investment firm specializing in AI companies, led the round. Rich Products Ventures, GO PA Fund, NZVC, UP.Partners, Green Circle Foodtech Ventures and Outlander VC also contributed.
Compared to its last round, Gupta said that investors wanted to spend more time on the details of the company earlier in the process. Almost every investor they spoke to also asked for an “AI story,” he said.
“It looks like funds have become more disciplined and are again rooting their decision making to business fundamentals,” Gupta said.
The company previously raised $1 million for its pre-seed round and a $5.5 million seed round in 2022. This new round brings the company’s total amount raised to $16 million at a $25 million valuation, according to PitchBook.
Lula’s AI-based platform helps small businesses create a digital presence to offer online shopping and delivery through apps like GrubHub, Uber Eats and DoorDash. The e-commerce platform also manages inventory, returns and customer service.
Adit Gupta came up with the idea after seeing how hard it was to help his parents get their convenience store online, he previously told Technical.ly
Now, the company is working with major retailers like Circle K, Jackson Food Stores and over 50 regional convenience chains. They are working toward 10,000 retail partners, Gupta said.
“As consumer expectations shift and digital continues to reshape retail,” Gupta said, “we’re committed to being the backbone that powers this transformation.”
