Spangle AI has raised $15 million in funding to expand its artificial intelligence platform that it designed to connect AI-driven product discovery with real-time online conversion.

NewRoad Capital Partners led the Spangle AI funding round. Madrona, DNX Ventures, Streamlined Ventures and strategic angel investors participated as well. The financing brings Spangle’s total funding to $21 million, the company said Jan. 8.

Spangle AI is a startup founded by former Amazon and retail technology executives. Founded in 2024, Spangle is developing what it describes as an “agentic” infrastructure layer for ecommerce as shopping behavior increasingly shifts toward AI-powered search, recommendation engines and social platforms that influence purchasing decisions before consumers visit a retailer’s website.

CEO Maju Kuruvilla said traditional ecommerce systems were not built for that shift.

“Traditional commerce stacks are fragmented, with slow feedback cycles and no intelligence layer tying discovery to execution,” Kuruvilla said in a statement. “We’re building infrastructure where AI-driven discovery and on-site execution operate as one system.”

How Spangle AI will use its new funding

The company said it has signed nine enterprise customers in its first nine months of operations, including fashion and apparel brands such as Revolve, Steve Madden and Alexander Wang. Those customers collectively generate about $3.8 billion in annual online sales, according to Spangle.

Spangle reported average month-over-month growth of 57% in traffic routed through its platform. It said its revenue run rate quadrupled from the third to the fourth quarter of 2025. The company also said its technology has delivered conversion increases of as much as 50% and doubled return on advertising for some customers. Those performance figures were provided by the company and were not independently verified.

Spangle said its platform centers on a commerce-specific AI reasoning engine that analyzes product data, advertising context and shopper behavior. Software agents act on that information in real time. Performance data continuously feeds back into the system to refine recommendations and on-site experiences.

Investors said the company’s focus on improving paid traffic efficiency and its early customer adoption helped distinguish it in a crowded retail technology market.

“Point solutions won’t capture the agentic commerce opportunity,” said Dave Finnegan, a strategic adviser at NewRoad Capital Partners, in a statement. “Spangle is building AI-native infrastructure, and traction with tier-one brands gave us conviction.”

As retailers adapt to more automated and AI-driven commerce workflows, Spangle said it plans to use the new funding to:

• Expand research and development.
• Advance its AI models.
• Grow its engineering team.

The company is targeting a global commerce market it estimates at $6.8 trillion, as artificial intelligence plays a growing role in how consumers search for, evaluate and purchase products online.

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