Bridging the Authenticity Gap in eCommerce: Hue's User-Generated Video Platform Combats Low Conversion Rates on DTC, Retailers Websites, Social Channels and Paid Ads
SAN FRANCISCO, CA / ACCESSWIRE / October 24, 2024 / Hue, the AI-powered SaaS platform that powers the end-to-end infrastructure for authentic user-generated video content that converts on eCommerce, announced today that it has closed $4.5M in seed funding. Fika Ventures and Underscore VC co-led the round, with follow-on participation from pre-seed investors including Sequoia Scouts, The MBA Fund, Glasswing Ventures, Courtyard Ventures, Phoenix Fund, and Tristan Walker's Heirloom Fund. Hue was also recently awarded a $150,000 equity-free grant from the Google for Startups Founders Fund. The funding will propel Hue's growth in beauty and apparel as well as new partnerships in footwear and accessories, with two footwear pilots already underway.
"Thanks to TikTok, user-generated video content has transformed how customers shop online," says Janvi Shah, CEO and Co-founder, Hue. "Yet, eCommerce sites typically lack this type of authentic video content, resulting in poor conversion. With more than 20% of all retail purchases expected to take place online this year and the eCommerce market expected to total over $8.1 trillion by 2026, brands need to provide user-generated video content that's relevant to each individual consumer."
Since launching in 2022, Hue has grown exponentially to become the trusted platform for 'Authentic Video that Converts', partnering with a diverse range of more than 45 brands and retailers, including Credo Beauty, the largest clean beauty retailer, and Tatcha, a best-selling skincare brand in Sephora and part of the Unilever Prestige portfolio. Hue's partners have reported a 5-25% increase in conversion rate and a 60-100% increase in time spent on site, resulting in a significant 5-10X ROI.
"Integrating Hue's Video Technology has proven to enhance the client experience for Tatcha," said Andrea Carver, SVP DTC and Technology, Tatcha. "Through an A/B test, we were able to see a substantial lift in conversion and sales. The customer journey has improved and we will continue to integrate Hue's Video Technology to more touchpoints on the Tatcha website to support product discovery and education."
Hue's AI-powered platform has seen impressive engagement, with over 4.1 million users interacting with its video technology and more than 6 million videos played through Hue's integrations on brand websites. This wealth of user interaction fuels Hue's AI, enabling the platform to continuously learn and tailor video content to individual shoppers based on their preferences and demographics.
Hue's expansion into apparel, footwear and accessories is further supported by notable advisors such as Jodi Bricker, whose extensive retail background with Wolverine Worldwide, Quay, Gap Inc., Levi's/Dockers and Macy's brings invaluable insights, Sneha Narahalli, Head of Product & UX, Sephora, Debra Perelman, who spent two decades at Revlon in various leadership roles including CEO, and Brett Hurt, Founder, Bazaarvoice.
Janvi Shah, CEO; Nicole Clay, CMO; and Sylvan Guo, COO, Hue's co-founders, met at Harvard Business School where they incubated Hue. Their backgrounds span roles at Google Search and Google Photos, L'Oréal USA, Lancôme, Kiehl's Since 1851 and Airbnb.
"If there is a team that deserves to win in this category, and has the lived experience and technical skills required to iterate to success - this is the team. The sheer scale of the opportunity Hue is tackling is undeniable; they are addressing a multi-billion dollar market desperate for a solution to declining conversions. In an eCommerce landscape starving for authenticity, their platform has the potential to not only reshape the industry but capture a significant portion of this vast market," said Richard Dulude, General Partner, Underscore VC.
"The Hue founders demonstrate a remarkable understanding of both the evolving consumer landscape and the eCommerce industry, where authentic video content is increasingly critical for driving engagement and conversions. Hue's platform closes an urgent ‘authenticity gap' in the eCommerce industry where consumers are quickly losing trust in the content they see," said Arteen Arabshahi, General Partner, Fika Ventures.
About Hue
Hue is the trusted platform for 'Authentic Video that Converts.' The AI-powered SaaS platform combats low conversion rates on eCommerce sites by providing brands with personalized, user-generated video content that resonates with individual shoppers. By bridging the authenticity gap in eCommerce, Hue empowers brands to deliver engaging shopping experiences that drive results. With a growing presence in beauty, apparel, footwear, and accessories, Hue has partnerships with more than 45 brands and retailers, including Credo Beauty, the largest clean beauty retailer, and Tatcha, a best-selling skincare brand in Sephora and part of the Unilever Prestige portfolio. For more information about Hue, visit https://poweredbyhue.com.
CONTACT:
Escalate PR for Hue
jennifer@escalatepr.com
SOURCE: Hue
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