Local tech startup secures £2.5M in seed funding to expand AI-powered customer service platform across UK retail sector.
Bristol-based technology company InnovateTech has announced the successful completion of a £2.5 million seed funding round, led by venture capital firm Northern Ventures with participation from several angel investors.
The funding will enable InnovateTech to accelerate the development of their flagship product, a conversational AI platform designed specifically for retail customer service teams. The company plans to expand its engineering team from 8 to 25 employees by the end of 2026.
"We've seen tremendous demand from retailers looking to enhance their customer service capabilities while managing costs," said Sarah Chen, CEO and co-founder of InnovateTech. "This investment allows us to scale our platform and bring our solution to more businesses across the UK."
The platform, which launched in beta six months ago, uses natural language processing to handle routine customer inquiries, allowing human staff to focus on more complex issues. Early adopters have reported a 40% reduction in response times and improved customer satisfaction scores.
InnovateTech currently works with three major UK retail chains and plans to onboard 15 additional clients over the next year. The company is also exploring expansion into the hospitality and healthcare sectors.
James Wilson, Partner at Northern Ventures, commented: "The retail landscape is evolving rapidly, and InnovateTech's approach to AI-assisted customer service addresses a real pain point. We're excited to support their growth journey."
The funding round comes at a time of increased investment in UK technology startups, with the sector attracting record levels of venture capital in recent months despite broader economic uncertainties.