State Of Retail Tech Q1’21 Report:

Investment & Sector Trends To Watch

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Contents
8 11 16 24 57

Summary Of Market Drivers Retail Tech Retail Tech Sector Appendix

Findings Investment Trends Highlights

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WHAT THE STATE OF RETAIL TECH Q1'21 REPORT COVERS

IN-STORE RETAIL TECH E-COMMERCE LOYALTY & REWARDS CYBERSECURITY

Companies offering tech
solutions that target brick-
and-mortar retail operations.
Companies that sell tangible TECH
goods online, as well as Companies that allow global
technologies that enable brands and local shops to
online sales. Excludes offer tech-enabled loyalty
services and food & grocery. and rewards programs to
their customers.
Vendors that provide
solutions for protecting
digital assets, including
identifying vulnerabilities,
thwarting attacks, and
training the workforce.

SUPPLY CHAIN & ON-DEMAND MEAL & GROCERY DELIVERY

LOGISTICS TECH Tech companies that offer Companies that are focused
Tech-enabled companies immediate delivery of goods on food delivery, including
that deliver services across and services. meal kits, meal and grocery
the supply chain, from freight delivery, and cloud kitchens.
shipping and warehousing to
inventory management and
last-mile delivery.

Clients can access the data used in this report in the Collections linked above. 7
Summary Of Findings
Overall retail tech trends
Retail tech investment is shifting toward a post-
pandemic world: Investment is flowing to omnichannel
priorities to enhance the store and connect inventories
across platforms. Retailers are looking to tech to digitize
the store, create more personalized and engaging online
experiences, and speed up fulfillment. Sustainability is
also top of mind following a year that bolstered the
importance of environmental resilience.
Funding to retail tech is off to its fastest run rate in 5
years: Overall, funding tripled in Q1’21 year-over-year
(YoY) to $28.9B. Deals were up 7% vs. the same period
last year. Funding continued its upward trend from the
second half of 2020, increasing 60% vs. Q4’20, while
deals declined by 2%.
E-commerce companies continue to win the highest
valuations: In Q1’21, 14 new retail tech unicorns were
born, largely in the e-commerce sector. Three of the 5
with the highest valuations – all above $1B – streamline
online ordering and fulfillment via marketplace platforms
or faster delivery.
Online delivery and marketplaces drove top mega-
rounds and key M&A: Q1’21 had 73 mega-rounds (deals
worth $100M+), up from just 33 in Q4’20. Funding to
online grocery platforms continued to accelerate; in
particular, grocery delivery in Asia garnered acquisition
interest from big tech companies. Amazon third-party
brand builders and headless commerce tech companies
were also M&A targets.
(summary continued on the next page) 8
Summary Of Findings
Retail tech sector-specific trends
Cashierless checkout and workforce management
solutions will be in focus: Retailers will continue to look
for efficiencies across store operations. In-store tech
funding doubled quarter-over-quarter (QoQ) in Q1’21 to
$2.2B, and nearly quadrupled vs. the same period in
2020. Deals increased 6% vs. last quarter.
Look for retailers and brands to invest in more
personalized e-commerce experiences: Funding to e-
commerce tech in Q1’21 jumped by 73% from the prior
quarter to $11.7B. Deals declined slightly, by 4%. To keep
up with online shoppers’ expectations, investment will
flow to tech companies that personalize search results,
enable virtual try-ons, and support livestream commerce.
More transferable rewards will help retailers and brands
boost loyalty: Executives’ discussion of customer loyalty
hit an all-time high in Q1’21. Fostering shopper loyalty will
remain a top priority as consumers resume some
“normal” spending habits. Funding to loyalty & rewards
tech companies increased in Q1’21 by 7% over Q4’20,
though deals declined 33%.
E-commerce growth is prompting more interest in
cybersecurity tech: Fraud protection and consumer data
privacy will be increasingly important as a significant
portion of consumer spending lives online. While funding
to retail-focused cybersecurity tech in Q1’21 ($1.8B) was
down 14% vs. Q4’20, it was still 37% higher than the
same period a year ago. Deals were also down from
Q4’20.
(summary continued on the next page) 9
Summary Of Findings
Retail tech sector-specific trends (cont’d.)

Retailers and brands remain focused on tech that will
strengthen and streamline their supply chains:
Financing is flowing to supply chain visibility tools, as
well as tech to make fulfillment faster and more efficient,
like on-demand warehousing and micro-fulfillment.
Investment in supply chain & logistics tech, which hit
$8.6B in Q1’21, was about flat vs. Q4’20, but nearly
doubled on a YoY basis.
Merchants will look for tech to enable even faster
delivery: On-demand delivery funding increased 50% in
Q1’21 from the previous quarter, to $6.1B. Deals were up
9%. Platforms that connect brands and retailers to local
delivery carriers will be in focus as consumers continue
to expect fast order fulfillment.
The dark convenience store model will propel ultra-fast
essentials delivery: The 11 deals in Q1’21 for dark c-
stores – which promise anywhere from 10- to 30-minute
delivery windows – surpassed total deals to the space in
all of 2020. Overall, food and beverage delivery tech
financing was up nearly 120% in Q1’21 over Q4’20, hitting
$8.6B. Deals rose by 31%. Group grocery buying
platforms remain hot in China, where consumers in
second-tier cities are using the models to get lower
prices on groceries and fresh produce.

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Q1’21
Retail Tech
Market
Drivers

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Q1'21 RETAIL TECH MARKET DRIVERS

Omnichannel tech a high priority for execs

Expect retailers to integrate more tech to enhance the store experience and connect each point of the customer
journey across digital and in-store channels.

Earnings call mentions of “omnichannel,” Q1’16 – Q1'21

The thing that matters most
economically with digital is the growth
in guest spend in total as they
become those omnichannel guests
that have a deeper relationship with
Target overall.

Michael Fiddelke

EVP and CFO, Target

Earnings Call (3/2/2021)

Source: CB Insights 12
Q1'21 RETAIL TECH MARKET DRIVERS

More investment in engagement throughout

the digital journey
With more e-commerce fundamentals in place, retailers and brands are turning their attention to tools to
manage online content and reach consumers more efficiently across digital platforms.

This year onwards, it's going to be
about unlocking the future of
shopping for our customers, meeting
them in their shopping journey in a
highly personalized omni-fashion. In
fact, we want to start serving our
customers right when they start
consuming content.
Suresh Kumar
EVP, Global Chief Technology Officer
& Chief Development Officer, Walmart
Earnings Call (2/18/2021)
We're going to add a lot more We are investing in content, retail
personalization and services this research, and innovation specifically
year that remove friction through that for e-commerce.
[e-commerce] channel, making it easy
to shop, see best sellers, more types Lawrence Kurzius
of payments and personalization to
really reach [the shopper]. CEO, McCormick & Company
Earnings Call (3/30/2021)
Bruce Thorn
CEO, Big Lots
Earnings Call (3/11/2021)

Source: CB Insights 13
Q1'21 RETAIL TECH MARKET DRIVERS
Retailers’ media networks will drive cross-
channel shopper reach
News mentions of “retail” or “retailer” and “advertising
network,” “ad network,” or “media network,” 2016 – Q1’21
Source: CB Insights
In Q1’21, Macy’s added its name to the list
of retailers that have launched media and
advertising networks to build customer
insights as well as revenue. This will make
tech that can track shoppers’ omnichannel
behavior even more crucial for retailers.
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Q1'21 RETAIL TECH MARKET DRIVERS

Sustainability is top of mind

Environmental resilience gained new importance last year. Brands and retailers continue to prioritize tech that will
help reduce emissions, optimize resources, and create transparency and traceability across their value chains.

Home Depot Opens Automated Dallas

Earnings call mentions of “sustainable” and “retail” Fulfillment Center With Hydrogen-Powered
or “brand,” Q1’08 – Q1'21 Forklifts
February 8, 2021 |

Ulta Unveils First-of-its-Kind Circular Beauty

Packaging Platform
March 9, 2021 |

Aldi Adopts New Sustainability Charter

March 10, 2021 |

Source: CB Insights 15
Q1’21 Retail
Tech
Investment
Trends

16
RETAIL TECH INVESTMENT TRENDS

Retail tech funding tripled vs. Q1’20

Quarterly global retail tech deals and funding ($M), Q1’18 — Q1’21

Total Funding # Of Deals

582 568
$30,000 532
556 555
532
600
503 507 524
497 490 483 496

$20,000 400

$10,000 200

$12,543 $12,417 $12,110 $14,294 $17,149 $11,379 $11,047 $7,527 $9,317 $8,722 $12,148 $18,072 $28,861
$0 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 17
RETAIL TECH INVESTMENT TRENDS

Global deal shares remained steady in Q1

By continent, quarterly, Q1’18 – Q1'21

100% Australia
Africa
17% 18% 15% 16% 21% 17%
South America
18% 20% 21% 23% 20% 20%
23% Europe
75%

39% 39% 43% 40% 36% 41%

40% 41% 38% 36% 35% Asia
50% 38% 36%

25%
41% 40% 39% 40% 40% 37% 37% 37% 37% 35% 39% North America
34% 34%

0%
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

Source: CB Insights 18
RETAIL TECH INVESTMENT TRENDS

Highest-valued new unicorns are in e-commerce

Deal date // Total disclosed
Company Amount raised ($M) funding ($M) Select investors Description

3/16/2021 // $315 $411 XVC Venture Capital, DST Global Weee! is an online grocery platform specializing in Asian and
Hispanic foods. It’s available in 13 states and Washington D.C.

Valuation: $2.8B

3/26/2021 // $300 $468 Sequoia Capital, Tiger Global Getir, based in Turkey, promises 10-minute delivery for
Management convenience-store essentials. It operates a dark-store model.

Valuation: $2.6B

3/16/2021 // $200 $253 Casa Verde Capital, Gron Ventures, Dutchie is an online marketplace for local marijuana
Thrive Capital dispensaries. It is available in 24 cities in the US and Canada.

Valuation: $1.7B

3/18/2021 // $230 $406 Bessemer Venture Partners, Yotpo’s platform lets brands source and promote user reviews
Vintage Investment Partners, and content, like photos and videos. The company also offers
Hanaco Venture Capital tools to build text marketing and loyalty programs.
Valuation: $1.4B

3/30/2021 // $120 $583 Soros Fund Management, JS Tokyo-based Paidy is a buy now, pay later service for e-
Capital Management, Tybourne commerce purchases.
Capital Management
Valuation: $1.3B

Source: CB Insights 19
RETAIL TECH INVESTMENT TRENDS

Delivery tech drove top mega-rounds

Deal date // Total disclosed
Company Amount raised ($M) funding ($M) Select investors Description

2/19/2021 // $4,470 KKR, Tencent Holdings, Sequoia Xingsheng Selected, based in Hunan, China, is a group-buying
$3,000 Capital China e-commerce platform for fresh groceries.

1/26/2021// $1,500 VMS Group, IDG Capital, Yunfeng Didi Cargo is the newly launched freight division of Beijing-
$1,500 Capital based mobility tech giant Didi Chuxing. Along with delivering
cargo between cities, it is piloting home delivery of essential
items.

1/26/2021 // $2,475 Hillhouse Capital Management Hong Kong-based Lalamove is an on-demand last-mile delivery
$1,500 service that instantly matches orders with professional drivers
across Asia and in select cities in North America.

3/23/2021 // $2,397 SoftBank Group, Luxor Capital GoPuff promises delivery of 30 minutes or less on a variety of
$1,150 Group, D1 Capital Partners consumables essentials, sourced from micro-fulfillment
centers. It is in more than 500 cities in the US.

3/1/2021 // $1,000 $2,833 Undisclosed investors, Wallenstam Klarna offers point-of-sale, buy now, pay later payment
solutions for e-commerce.

Note: Mega-rounds are deals worth $100M+. “Select investors” includes participants in the specific mega-round listed. 20
RETAIL TECH INVESTMENT TRENDS
Online delivery, marketplaces among
notable M&A
Uber acquired alcohol delivery
service Drizly for $1.1B.
February 2, 2021
Retail tech company Warung
Pintar, which focuses on small
businesses in Indonesia,
acquired online B2B
marketplace Bizzy for $45M.
February 24, 2021
Source: CB Insights
India-based holding Indian conglomerate Reliance
company Tata Group bought Industries bought online grocery
a majority stake in online startup Milkbasket, which
grocery delivery company promises early morning
Big Basket for $1.3B. deliveries, for between $40-43M.
February 16, 2021 February 17, 2021
Jungle Scout, which buys Headless commerce tech company
and grows third-party Arfa acquired business
Amazon brands, bought intelligence platform Yaguara and
Amazon advertising tech renamed the combined company
specialist Downstream. Chord.
March 4, 2021 March 24, 2021
21
RETAIL TECH INVESTMENT TRENDS
Big tech in Q1: Amazon’s retail investments
ACQUISITIONS
• Selz (2/16/2021): Australia-based e-commerce platform provider
for small businesses. The acquisition could help Amazon reach
small businesses and compete with Shopify.
• Perpule (3/30/2021): Helps stores in India get online. The
acquisition funnels into Amazon’s broader efforts to digitize
retail in India.
Source: CB Insights
INVESTMENTS
• Deliveroo (1/17/2021): UK-based food delivery company.
• Rivian (1/19/2021): Electric vehicle company making a fleet of
electric delivery vans for Amazon.
• MyGlamm (3/18/2021): On-demand beauty and spa services
platform.
• Cameo (3/30/2021): Celebrity video platform, with investment
from Amazon’s Alexa Fund.
22
RETAIL TECH INVESTMENT TRENDS
Big tech in Q1: Alibaba’s retail developments
INVESTMENTS
• Seeshion Tech (1/25/2021): Video production for platforms like
TikTok and Taobao.
• Zowee Soft (1/28/2021): Makes custom home improvement
products including cabinets, windows, doors, and more.
• Caihuasuan (2/26/2021): Fresh food supply chain and logistics.
• Leyan Tech (3/15/2021): Application of natural language
processing in e-commerce and other industries.
• Nice Tuan (3/31/2021): Group buying online grocery platform.
Source: CB Insights
BUSINESS RELATIONSHIPS
• In January, Alibaba and Unilever announced a “Waste-Free
World” initiative to cut plastic use and promote recycling. The
companies developed recycling machines that use AI to identify
different types of plastic, which are then sorted and sent to
recycling centers. The machines are in 20 locations in Shanghai
and Huangzhou.
• In March, Japan-based resale marketplace Mercari announced
that it would list its products on Alibaba’s Taobao and Xianyu
marketplaces.
23
Q1’21
Retail Tech
Sector
Highlights

24
WHAT THE STATE OF RETAIL TECH Q1'21 REPORT COVERS

IN-STORE RETAIL TECH E-COMMERCE LOYALTY & REWARDS CYBERSECURITY

Companies offering tech
solutions that target brick-
and-mortar retail operations.
Companies that sell tangible TECH
goods online, as well as Companies that allow global
technologies that enable brands and local shops to
online sales. Excludes offer tech-enabled loyalty
services and food & grocery. and rewards programs to
their customers.
Vendors that provide
solutions for protecting
digital assets, including
identifying vulnerabilities,
thwarting attacks, and
training the workforce.

SUPPLY CHAIN & ON-DEMAND MEAL & GROCERY DELIVERY

LOGISTICS TECH Tech companies that offer Companies that are focused
Tech-enabled companies immediate delivery of goods on food delivery, including
that deliver services across and services. meal kits, meal and grocery
the supply chain, from freight delivery, and cloud kitchens.
shipping and warehousing to
inventory management and
last-mile delivery.

Clients can access the data used in this report in the Collections linked above. 25
IN-STORE RETAIL TECH DEALS AND FUNDING

As shoppers return, in-store tech funding rose

Quarterly global in-store retail tech deals and funding ($M), Q1’18 — Q1’21

Total Funding # Of Deals

69
$2,500 66 70
60 58
55 53 52
55 60
$2,000 48 51
44 50
40 41
$1,500 40

$1,000 30
20
$500
10
$363 $944 $632 $435 $611 $749 $1,527 $874 $610 $475 $1,964 $1,003 $2,201
$0 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 26
HIGHLIGHT #1: WORKFORCE MANAGEMENT TOOLS

Making store communications more efficient

Latest Round: Series A (2/17/2021) Amount: $3M Latest Round: Series B (3/2/2021) Amount: $30M

About: Quebec-based Foko Retail makes a mobile
platform for retailers to communicate with their
store employees and monitor operations, audit
merchandising, and more at the store. Among its
clients are Whole Foods Market, Nike, Five Below,
and Hermes.
About: Retail Zipline’s platform enables connection
between retailers and their stores. Retailers can
manage tasks, offer trainings, and assess
performance via the tools. Among its clients are LL
Bean, Hy-Vee, and Speedway.

Source: CB Insights 27
HIGHLIGHT #2: CASHIERLESS CHECKOUT

Personalizing the checkout-free experience

KROGER + CAPER VEEVE SUPERSMART

In January 2021, Kroger announced the

pilot of its new “KroGO” smart shopping
carts, with technology by smart cart Latest Round: Debt (3/24/2021)
maker Caper.
Shoppers can scan their loyalty cards at Amount: $1.5M
the start, and screens on the carts offer
personalized recommendations and About: Veeve’s smart cart features
promotions, as well as help with a touchscreen that offers
navigating the store. Shoppers then pay targeted recommendations
for their orders on a device on the cart. and coupons. Store
employees can also offer
remote support.
Latest Round: Corporate Minority (2/11/2021)
Amount: $10M
About: Israel-based SuperSmart’s
scan and go app offers
product suggestions and
discounts. Users finish their
trips by validating their orders
at SuperSmart’s scanners.

Source: CB Insights 28
WHAT THE STATE OF RETAIL TECH Q1'21 REPORT COVERS

IN-STORE RETAIL TECH E-COMMERCE LOYALTY & REWARDS CYBERSECURITY

Companies offering tech
solutions that target brick-
and-mortar retail operations.
Companies that sell tangible TECH
goods online, as well as Companies that allow global
technologies that enable brands and local shops to
online sales. Excludes offer tech-enabled loyalty
services and food & grocery. and rewards programs to
their customers.
Vendors that provide
solutions for protecting
digital assets, including
identifying vulnerabilities,
thwarting attacks, and
training the workforce.

SUPPLY CHAIN & ON-DEMAND MEAL & GROCERY DELIVERY

LOGISTICS TECH Tech companies that offer Companies that are focused
Tech-enabled companies immediate delivery of goods on food delivery, including
that deliver services across and services. meal kits, meal and grocery
the supply chain, from freight delivery, and cloud kitchens.
shipping and warehousing to
inventory management and
last-mile delivery.

Clients can access the data used in this report in the Collections linked above. 29
E-COMMERCE DEALS AND FUNDING

Investment in e-commerce continued to climb

Quarterly global e-commerce deals and funding ($M), Q1’18 — Q1’21

Total Funding # Of Deals

$12,000 267 300
261 259 251 255
242 245
$10,000 234 232
211 208 206
202
$8,000 200

$6,000

$4,000 100

$2,000
$3,966 $5,455 $5,350 $5,778 $5,138 $4,271 $5,078 $4,249 $2,785 $3,495 $6,446 $6,738 $11,670
$0 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 30
HIGHLIGHT #1: ONLINE CONTENT MANAGEMENT

Increasing needs for personalization tech

PERSONALIZED EXPERIENCE SMART BASKET BUILDING

Latest Round: Series D (1/26/2021) Amount: $150M Latest Round: Seed (2/8/2021) Amount: $1.5M

About: Bloomreach personalizes online search, About: Compat.io’s tech automates online product
merchandising, and product recommendations recommendations, bundles, and solutions for high-
across platforms using AI. consideration items like electronics and outdoor
sports equipment.

Source: CB Insights 31
HIGHLIGHT #2: VIRTUAL TRY-ON TECH
Virtual try-on tech could boost beauty, fashion
Latest Round: Series C (1/6/2021)
Amount: $50M
About: Perfect Corp’s virtual try-on
tech powers retailers’ and
brands’ online and in-store
tools, as well as its own
consumer app YouCam
Makeup.
Source: CB Insights
Latest Round: Series A (3/16/2021)
Amount: $6.5M
About: 3DLook’s mobile body
scanning tech YourFit gives
shoppers instant size and fit
recommendations matched
to brands’ products.
In March, Snap acquired Berlin-based Fit
Analytics, which makes an online sizing tool
that uses shopper input and machine
learning to make size and product
recommendations. Snap plans to use the
acquisition to help increase shopping on its
platform.
32
HIGHLIGHT #3: LIVESTREAM COMMERCE
Demand rises for livestream tech
Latest Round: IPO (2/5/2021)
Amount: N/A
About: Kuaishou, a popular
livestreaming platform in
China, recently added e-
commerce capabilities that
allow users to buy directly
from Kuaishou influencers.
Source: CB Insights
In March, Nordstrom introduced a
shoppable livestream platform called
Nordstrom Live, with the aim of prompting
discovery and driving personalization.
Experts will style clothes, showcase
beauty products, and interact with
shoppers through livestreams.
Walmart launched its second livestream
shopping event on TikTok in March. This
time, the event highlighted beauty
products. TikTok creators shared beauty
tutorials and shoppers were able to order
products directly from the channel.
33
HIGHLIGHT #4: DECENTRALIZED COMMERCE

NFTs offer new potential for digital connection

Non-fungible tokens, which represent digital assets verified through the blockchain, have caught fire among execs
across industries. Brands are already using NFTs to create unique online experiences. Merchants could use them to
reduce online transaction costs and bypass intermediaries like Amazon.
DECENTRALIZED COMMERCE
Earnings call mentions of “NFT” or “non-fungible INFRASTRUCTURE COMPANIES
token,” Q1’16 – Q1’21

Boson Protocol Splyt Core

Latest round: $6.65M Latest round: $2.75M

Unattributed - II (3/11/2021)
Boson Protocol develops a
network for exchanging digital
assets for physical items using
NFTs.
Seed VC - II (3/26/2021)
Splyt Core is an open-source e-
commerce protocol built around
NFTs. Its app allows existing e-
commerce stores to integrate
NFT infrastructure.

Source: CB Insights 34
WHAT THE STATE OF RETAIL TECH Q1'21 REPORT COVERS

IN-STORE RETAIL TECH E-COMMERCE LOYALTY & REWARDS CYBERSECURITY

Companies offering tech
solutions that target brick-
and-mortar retail operations.
Companies that sell tangible TECH
goods online, as well as Companies that allow global
technologies that enable brands and local shops to
online sales. Excludes offer tech-enabled loyalty
services and food & grocery. and rewards programs to
their customers.
Vendors that provide
solutions for protecting
digital assets, including
identifying vulnerabilities,
thwarting attacks, and
training the workforce.

SUPPLY CHAIN & ON-DEMAND MEAL & GROCERY DELIVERY

LOGISTICS TECH Tech companies that offer Companies that are focused
Tech-enabled companies immediate delivery of goods on food delivery, including
that deliver services across and services. meal kits, meal and grocery
the supply chain, from freight delivery, and cloud kitchens.
shipping and warehousing to
inventory management and
last-mile delivery.

Clients can access the data used in this report in the Collections linked above. 35
LOYALTY & REWARDS TECH DEALS AND FUNDING

Loyalty tech funding was up, but deals declined

Quarterly global loyalty and rewards tech deals and funding ($M), Q1’18 — Q1’21

Total Funding # Of Deals

$500 25
21
$400 19 20
18
17
15
$300 14 15
13
12 12
11
$200 9 8 10
7

$100 5
$49 $141 $63 $290 $44 $117 $253 $107 $410 $33 $103 $243 $260
$0 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 36
HIGHLIGHT #1: LOYALTY A TOP FOCUS

Execs’ discussion of loyalty hit an all-time high

Executives are feeling an escalating need to engage consumers across channels.

Earnings call mentions of “loyalty” and “shopper” or “consumer,”

Q1’08 – Q1'21
Candidly, we don't think our industry or
us have cracked the code [in rewards].
So … it opens the door to a more
comprehensive and innovative
approach to loyalty and the other
consumer offers that can be
incorporated … the focus of the new
program that we're developing in parallel
with the rebranding efforts is really
going to focus on ease, connection, and
value.

Brian Hannasch

CEO, Alimentation Couche-Tard

Earnings Call (3/18/2021)

Source: CB Insights 37
HIGHLIGHT #2: FUNGIBLE LOYALTY POINTS AND REWARDS

Transferable rewards connect digital, physical

Latest Round: IPO – Reverse Merger Latest Round: Seed (2/24/2021) Latest Round: Angel (3/25/2021)
(1/11/2021)
Amount: N/A Amount: $5M Amount: $480k

About: Bakkt allows consumers to
convert participating
rewards programs and
loyalty points into cash,
crypto, or other types of
rewards and loyalty points.
About: Lolli is a bitcoin rewards About: London-based Swapi
application that lets allows users to swap
people earn and own their loyalty rewards,
bitcoin when they shop cashback, and gift cards
online. between brands.

Source: CB Insights 38
WHAT THE STATE OF RETAIL TECH Q1'21 REPORT COVERS

IN-STORE RETAIL TECH E-COMMERCE LOYALTY & REWARDS CYBERSECURITY

Companies offering tech
solutions that target brick-
and-mortar retail operations.
Companies that sell tangible TECH
goods online, as well as Companies that allow global
technologies that enable brands and local shops to
online sales. Excludes offer tech-enabled loyalty
services and food & grocery. and rewards programs to
their customers.
Vendors that provide
solutions for protecting
digital assets, including
identifying vulnerabilities,
thwarting attacks, and
training the workforce.

SUPPLY CHAIN & ON-DEMAND MEAL & GROCERY DELIVERY

LOGISTICS TECH Tech companies that offer Companies that are focused
Tech-enabled companies immediate delivery of goods on food delivery, including
that deliver services across and services. meal kits, meal and grocery
the supply chain, from freight delivery, and cloud kitchens.
shipping and warehousing to
inventory management and
last-mile delivery.

Clients can access the data used in this report in the Collections linked above. 39
CYBERSECURITY TECH IN RETAIL DEALS AND FUNDING

E-com growth spurred more cybersecurity deals

Quarterly global retail cybersecurity deals and funding ($M), Q1’18 — Q1’21

Total Funding # Of Deals

$2,500 40
31 30
$2,000 28 29
27 30
25
$1,500 22 21
18 18 19
20
15 14
$1,000
10
$500
$219 $1,317 $268 $512 $622 $1,604 $888 $552 $1,300 $1,323 $907 $2,079 $1,779
$0 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 40
HIGHLIGHT #1: E-COMMERCE FRAUD PROTECTION
E-commerce fraud protection is maturing
Latest Round: Acquired (1/8/2021)
Amount: $640M
About: In January, credit reporting
agency Equifax acquired
Kount, which uses AI to
track fraudulent
transactions in retail and
other businesses.
Source: CB Insights
Latest Round: Series C (2/4/2021) Latest Round: Series E - II (3/1/2021)
Amount: N/A Amount: $3.4M
About: Arkose Labs tracks and About: Riskified uses AI to recognize
challenges fraudulent legitimate customers in e-
behavior in retail, commerce to help retailers
payments, gaming, travel, drive conversion and sell
and other businesses. internationally.
41
HIGHLIGHT #2: CONSUMER DATA PRIVACY

Focus on automating global privacy compliance

Latest Round: Series B Amount: $20M Latest Round: Series B Amount: $30M

About: Wirewheel’s data privacy management platform
helps retailers and brands automate compliance
with global laws and meet consumer preferences
for privacy.
About: DataGrail’s privacy platform helps companies
comply with data privacy regulations via
automation. It promises to help businesses build
privacy and data protection into their broader apps
and operations.

Source: CB Insights 42
WHAT THE STATE OF RETAIL TECH Q1'21 REPORT COVERS

IN-STORE RETAIL TECH E-COMMERCE LOYALTY & REWARDS CYBERSECURITY

Companies offering tech
solutions that target brick-
and-mortar retail operations.
Companies that sell tangible TECH
goods online, as well as Companies that allow global
technologies that enable brands and local shops to
online sales. Excludes offer tech-enabled loyalty
services and food & grocery. and rewards programs to
their customers.
Vendors that provide
solutions for protecting
digital assets, including
identifying vulnerabilities,
thwarting attacks, and
training the workforce.

SUPPLY CHAIN & ON-DEMAND MEAL & GROCERY DELIVERY

LOGISTICS TECH Tech companies that offer Companies that are focused
Tech-enabled companies immediate delivery of goods on food delivery, including
that deliver services across and services. meal kits, meal and grocery
the supply chain, from freight delivery, and cloud kitchens.
shipping and warehousing to
inventory management and
last-mile delivery.

Clients can access the data used in this report in the Collections linked above. 43
SUPPLY CHAIN & LOGISTICS TECH DEALS AND FUNDING

Supply chain funding maintained Q4’s fast pace

Quarterly global supply chain & logistics tech deals and funding ($M), Q1’18 — Q1’21

Total Funding # Of Deals

$12,000 181 200
174
157 161 157
$10,000 146 146 144
143 141 140 150
$8,000 120
111
$6,000 100

$4,000
50
$2,000
$6,542 $4,733 $5,406 $5,377 $10,284 $5,324 $3,631 $2,178 $4,335 $3,298 $2,376 $8,562 $8,554
$0 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 44
HIGHLIGHT #1: SUPPLY CHAIN VISIBILITY

Visibility tech drives resilience & sustainability

Latest Round: Series B - IV (2/11/2021) Latest Round: Series C (1/14/2021) Latest Round: Series D (3/24/2021)

Amount: $18M Amount: $32M Amount: $100M

About: Roambee's sensor logistics About: Shippeo allows customers About: FourKites is a logistics
platform uses IoT sensors to track road and sea technology platform that
to collect data and AI to shipments via GPS as they utilizes Machine-2-
deliver insights. move across the globe. Machine (M2M)
technologies.

45
HIGHLIGHT #2: LAST-MILE EFFICIENCY

Companies streamlining fulfillment gain traction

ON-DEMAND WAREHOUSING E-COMMERCE FULFILLMENT WAREHOUSE AUTOMATION

Latest Round: Series B (3/16/2021) Latest Round: Series D (3/3/2021) Latest Round: Series E (2/17/2021)

Amount: $31M Amount: $135M Amount: $150M

About: Flowspace is a logistics About:
company that provides on-
demand warehousing and
services to businesses of
all sizes.
Deliverr provides About: Locus Robotics designs
fulfillment centers. It and builds autonomous
uses machine learning to mobile robots for use in
determine which of its warehouses.
warehouses to use when
storing clients’ goods.
46
HIGHLIGHT #3: AUTOMATED FULFILLMENT

Micro-fulfillment continues to move into the

mainstream
Walmart is Expanding Its Robot- Ahold Delhaize Launching Automated
Powered Fulfillment Centers To Fulfillment Center In Philadelphia
‘Dozens Of Locations’ February 16, 2021 |
January 27, 2021 |

Albertsons Is Taking The Next Step In H Mart Plans Micro-Fulfillment Center

Testing MFC* Technology To Fuel Online Grocery
March 22, 2021 | March 30, 2021 |

*Micro-fulfillment center. 47
WHAT THE STATE OF RETAIL TECH Q1'21 REPORT COVERS

IN-STORE RETAIL TECH E-COMMERCE LOYALTY & REWARDS CYBERSECURITY

Companies offering tech
solutions that target brick-
and-mortar retail operations.
Companies that sell tangible TECH
goods online, as well as Companies that allow global
technologies that enable brands and local shops to
online sales. Excludes offer tech-enabled loyalty
services and food & grocery. and rewards programs to
their customers.
Vendors that provide
solutions for protecting
digital assets, including
identifying vulnerabilities,
thwarting attacks, and
training the workforce.

SUPPLY CHAIN & ON-DEMAND MEAL & GROCERY DELIVERY

LOGISTICS TECH Tech companies that offer Companies that are focused
Tech-enabled companies immediate delivery of goods on food delivery, including
that deliver services across and services. meal kits, meal and grocery
the supply chain, from freight delivery, and cloud kitchens.
shipping and warehousing to
inventory management and
last-mile delivery.

Clients can access the data used in this report in the Collections linked above. 48
ON-DEMAND DEALS AND FUNDING

On-demand deals and funding on the rise

Quarterly global on-demand deals and funding ($M), Q1’18 — Q1’21

Total Funding # Of Deals

79 78 79 80
75 77 76
$8,000 80
61
58
$6,000 55 53 60
49

37
$4,000 40

$2,000 20

$5,297 $2,825 $5,002 $5,622 $5,057 $4,490 $2,635 $1,374 $3,404 $2,155 $1,616 $4,042 $6,054
$0 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 49
HIGHLIGHT #1: SAME-DAY DELIVERY

Using tech to enable fast local delivery

Latest Round: Incubator/Accelerator Amount: N/A Latest Round: Series A (3/16/2021) Amount: N/A
(3/4/2021)

About: Ohi enables same-day delivery for direct-to-
consumer brands by bringing inventory closer to
customers. The company helps brands set up
micro-fulfillment centers in cities by targeting
empty offices or retail space, then connects with
local carriers to optimize delivery.
About: Amsterdam-based Bringly enables same-day
delivery from stores in 40 cities in the Netherlands
and Belgium. Its couriers use road bikes, cargo
bikes, and electric vehicles to deliver orders.

Source: CB Insights 50
HIGHLIGHT #2: FAST B2B DELIVERY

Funding flowed to materials delivery services

Latest Round: Series A (1/21/2021) Amount: $6M Latest Round: Angel (2/8/2021) Amount: $1.1M

About: Curri offers an on-demand courier service between
contractors and construction suppliers. Its
vehicles, such as trucks or flatbeds, are
specialized to materials and construction
deliveries.
About: Australia-based Getter is a marketplace and
express delivery service for trade materials for
construction sites. Its fleet delivers in metro
Sydney, Melbourne, and Brisbane.

Source: CB Insights 51
WHAT THE STATE OF RETAIL TECH Q1'21 REPORT COVERS

IN-STORE RETAIL TECH E-COMMERCE LOYALTY & REWARDS CYBERSECURITY

Companies offering tech
solutions that target brick-
and-mortar retail operations.
Companies that sell tangible TECH
goods online, as well as Companies that allow global
technologies that enable brands and local shops to
online sales. Excludes offer tech-enabled loyalty
services and food & grocery. and rewards programs to
their customers.
Vendors that provide
solutions for protecting
digital assets, including
identifying vulnerabilities,
thwarting attacks, and
training the workforce.

SUPPLY CHAIN & ON-DEMAND MEAL & GROCERY DELIVERY

LOGISTICS TECH Tech companies that offer Companies that are focused
Tech-enabled companies immediate delivery of goods on food delivery, including
that deliver services across and services. meal kits, meal and grocery
the supply chain, from freight delivery, and cloud kitchens.
shipping and warehousing to
inventory management and
last-mile delivery.

Clients can access the data used in this report in the Collections linked above. 52
MEAL AND GROCERY DELIVERY DEALS AND FUNDING

Funding continued to flow to grocery delivery

Quarterly global meal and grocery delivery deals and funding ($M), Q1’18 — Q1’21

Total Funding # Of Deals

$10,000 81 90
78
75 72
71 68 71
$8,000 67
60 62
56 55 57
60
$6,000

$4,000
30
$2,000
$4,546 $1,781 $3,760 $4,638 $3,994 $4,106 $2,348 $969 $2,797 $1,945 $3,092 $3,938 $8,601
$0 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 53
HIGHLIGHT #1: DARK CONVENIENCE STORES

Record-high funding & deals for dark c-stores

Quarterly dark convenience store deals and funding ($M), Q1’18 – Q1’21

Total Funding # Of Deals

$2,500 11 12

$2,000
8
$1,500
5
$1,000
3 4
2 2 2 2
$500
1 1
0
$0 0
$0
0 $0 $750 $40 0
$0 $3 $453 $2,035
$169 $167 $2.9
$0 $134 $114 0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Funding ($M) Deal count

Source: CB Insights 54
HIGHLIGHT #1: DARK CONVENIENCE STORES

Funding fueled expansion of ultra-fast delivery

Weezy Cajoo
Where: London Where: Paris and Lille, France
Latest round: $20M Latest round: $7.2M
Series A (1/13/2021) Seed VC (2/4/2021)
Delivery estimate: 15 minutes Delivery estimate: 15 minutes

Latest Round: Series C (3/26/2021) Amount: $468M

About: Turkey-based Getir, which uses the dark

convenience store model to deliver groceries to Fridge No More Gorillas
customers in 10 minutes, reached unicorn status Where: Select Brooklyn, New Where: Germany, Netherlands,
with its latest round, led by Sequoia Capital. The York, neighborhoods UK, France
company is planning on using its recent funding to Latest round: $15.26M Latest round: $290M
expand throughout Europe.
Series A (3/9/2021) Series B at unicorn valuation
Delivery estimate: 15 minutes (3/25/2021)
Delivery estimate: 10 minutes
Source: CB Insights Note: Unicorns are private companies worth $1B+. 55
HIGHLIGHT #2: GROUP BUYING MODELS

Second-tier cities power group buying in China

Latest Round: Series D (2/19/2021) Amount: $3B Latest Round: Series D (3/31/2021) Amount: $750M

About: Xingsheng Selected is a group grocery and fresh
produce buying platform. Group leaders distribute
the orders to the rest of the buyers and cut out
delivery costs.
JD.com and Tencent Holdings are among the
company’s investors.
About: Nice Tuan allows shoppers to band together to buy
groceries and fresh produce in bulk and save on
the products and on fulfillment. The company
generates 15M orders per day.
Alibaba was among the investors in Nice Tuan’s
Series D round.

Source: CB Insights 56
Appendix

57
Methodology
CB Insights encourages you to review the methodology and definitions employed to better understand the numbers
presented in this report. If you have any questions about the definitions or methodological principles used, we encourage
you to reach out to CB Insights directly. Additionally, if you feel your firm has been under-represented, please send an
email to info@cbinsights.com and we can work together to ensure your firm’s investment data is up to date.

What is included: What is excluded:

• Equity funding and deals to tech-enabled retail- and consumer- • Tech-enabled startups and other private companies for which
oriented startups and other private companies, as prescribed by retail and consumer businesses are not the primary focus. This
the 7 categories (Collections) highlighted in this report. ranges from marketing companies to certain forms of e-
• Along with B2C companies, the Collections include B2B retailers commerce enablement (e.g., payments).
and providers. The On-Demand Collection also includes service
providers.
• Categories are not mutually exclusive. For example, a grocery
delivery company may be included in both the On-Demand and
Food & Beverage Delivery Collections. Criteria for categories can
be found on page 6.
• Historical funding data is subject to change as our technology &
data operations explore data sets globally and refine company
classifications.

58
 IN-STORE RETAIL TECH CYBERSECURITY
Get All The COLLECTION COLLECTION

Data Used In
This Report E-COMMERCE SUPPLY CHAIN & LOGISTICS
COLLECTION TECH COLLECTION

LOYALTY & REWARDS

ON-DEMAND COLLECTION
TECH COLLECTION

FOOD & BEVERAGE

DELIVERY COLLECTION

59