Whatnot, a leading live-stream shopping platform, has acquired Shaped, a machine learning company specializing in real-time recommendation and search systems. This strategic move aims to bolster Whatnot’s discovery and personalization features as the platform continues its rapid expansion across diverse product categories and a growing user base.
Unlike traditional e-commerce platforms with relatively stable product catalogs, Whatnot’s marketplace is dynamic, with live auctions that can conclude within minutes or extend for hours. This constant flux presents a unique challenge in delivering timely and relevant product recommendations to users.
By integrating Shaped’s advanced technology, Whatnot plans to enhance the speed and accuracy of its recommendation engine. Emmanuel Fuentes, Vice President of Data and AI at Whatnot, emphasized the importance of this development, noting that the company has already reduced recommendation latency from approximately a day to mere minutes over the past six years. The incorporation of Shaped’s capabilities is expected to push these recommendations even closer to real-time, aligning with the fast-paced nature of live commerce.
Shaped’s expertise lies in combining existing customer data with large language models and machine learning to deliver highly personalized search and discovery experiences. Their client portfolio includes notable companies such as Outdoorsy and QVC. As part of the acquisition, Shaped’s founder and CEO, Tullie Murrell, along with nearly a dozen engineers and AI researchers, will join Whatnot. Murrell is set to lead the newly established Applied AI Research group within the company.
Founded in 2019, Whatnot has experienced significant growth, recently surpassing one billion orders processed by its sellers. Earlier this year, the company secured $225 million in Series F funding, elevating its valuation to over $11 billion. This growth trajectory underscores Whatnot’s commitment to enhancing user experience and solidifying its position in the live commerce sector.
The acquisition of Shaped is a strategic step for Whatnot, reflecting a broader trend among resale giants to integrate AI throughout their platforms. By enhancing its recommendation systems, Whatnot aims to provide a more personalized and efficient shopping experience, catering to the evolving demands of its expanding user base.
As live commerce continues to gain traction, the integration of advanced AI technologies will be crucial in maintaining a competitive edge. Whatnot’s proactive approach in acquiring Shaped positions the company to better navigate the complexities of real-time inventory changes and shifting buyer intents, ultimately enhancing the overall user experience.
