Loops AI Secures $3.5 Million to Transform E-commerce Search
Turkish-born technology startup Loops AI has successfully closed a $3.5 million seed funding round to accelerate its innovative artificial intelligence-based natural language search platform. The investment round featured participation from Andreessen Horowitz (a16z Speedrun), alongside major global stakeholders including NTT DOCOMO, Connecticut Innovations, Monday Capital, and Alumni Ventures, as well as high-level individual investors from industry giants like Netflix and Google. Founded in 2025 by İlker Selim Zorluoğlu, Ari Nazir, and Yusuf Bahadır, the company aims to utilize this capital to bolster its engineering team and spearhead international expansion, with a primary focus on the Japanese market.
- Loops AI raised $3.5 million in a seed round led by high-profile global investors including a16z Speedrun.
- The company platform replaces traditional filter-based navigation with conversational, natural language search queries.
- Retailers utilizing the technology report significant increases in conversion rates and average basket sizes.
- The startup plans to expand its operations into Japan before targeting European and Southeast Asian markets.
Traditional Filtering Methods are Becoming Obsolete
The current e-commerce landscape often forces users to navigate complex category trees or input specific keywords to find products, a process that frequently leads to friction. Loops AI eliminates these barriers by allowing shoppers to interact with platforms using everyday language, simulating the experience of speaking with a knowledgeable store associate. By analyzing user intent and matching it against real-time inventory, brand logic, and product catalogs, the system provides highly relevant search results instantly.
Retail Performance Metrics Show Consistent Growth
The platform has already demonstrated its efficacy through partnerships with major Turkish retailers such as Mavi, Boyner, and A101 Ekstra. Data indicates that the integration of the AI-powered shopping assistant drives tangible commercial gains. For instance, A101 Ekstra reported an 83% increase in purchase conversion rates and a 77% rise in add-to-cart actions compared to traditional search methods. Similarly, Wee Baby observed a 32% order rate following the first interaction with the assistant, alongside significant growth in average spending per customer.
Global Expansion Strategies are Being Implemented
With the fresh capital, the company is prioritizing its entry into the Japanese market, bolstered by the strategic support of NTT DOCOMO. Founders note that while general-purpose AI models are prevalent, the true value lies in transforming proprietary company data into measurable business success. Beyond retail, the startup is developing multi-layered AI architectures designed for data-heavy industries such as energy and finance. By leveraging Small Language Models (SLMs), the company enables enterprises to maintain secure and efficient data environments across multiple integrated AI systems.
Do you believe that conversational AI will completely replace traditional category-based navigation in online shopping within the next few years? Share your thoughts on how this shift might change your personal shopping habits in the comments below.
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