Hue, an AI-powered SaaS platform transforming user-generated video content in eCommerce, recently announced the close of a $4.5 million seed funding round, co-led by Fika Ventures and Underscore VC. Existing pre-seed backers, including Sequoia Scouts, The MBA Fund, Glasswing Ventures, Courtyard Ventures, Phoenix Fund, and Tristan Walker’s Heirloom Fund, also participated. Additionally, Hue secured a $150,000 equity-free grant from the Google for Startups Founders Fund. The fresh capital will fuel Hue’s expansion into beauty, apparel, and new categories such as footwear and accessories, where two footwear pilot programs are already underway.
Since its launch in 2022, Hue has emerged as the go-to platform for “Authentic Video that Converts,” boasting partnerships with over 45 brands, including clean beauty leader Credo Beauty and the skincare brand Tatcha, part of Unilever’s Prestige portfolio. Hue’s technology has significantly impacted conversion rates, with some partners reporting increases between 5–25% and a 60–100% increase in time spent on sites, leading to an impressive 5–10X ROI.
Hue’s AI-driven platform continues to evolve through extensive user engagement; over 4.1 million users have interacted with Hue’s video technology, and more than 6 million videos have been played on partner sites. These interactions fuel Hue’s machine learning algorithms, which refine content recommendations to enhance personalization based on shoppers’ preferences and demographics.
Hue’s leadership team, comprising co-founders Janvi Shah (CEO), Nicole Clay (CMO), and Sylvan Guo (COO), met while studying at Harvard Business School. They bring a wealth of experience from roles at Google, L’Oréal USA, Lancôme, and Airbnb, and are supported by a robust advisory board, including retail veterans like Jodi Bricker (Wolverine Worldwide, Quay, Gap), Sneha Narahalli (Sephora), Debra Perelman (former CEO, Revlon), and Brett Hurt (Bazaarvoice).
CEO Janvi Shah expressed that with the exponential growth of eCommerce, brands must meet consumer demand for relevant, authentic video content — a gap Hue aims to fill. Andrea Carver, SVP of DTC and Technology at Tatcha, shared that integrating Hue’s technology had led to a substantial increase in conversion and sales, enhancing the customer journey and product discovery.
Richard Dulude, General Partner at Underscore VC, praised Hue’s team for their deep understanding of the market’s needs, noting that Hue addresses a multi-billion-dollar opportunity to reverse declining conversions in an eCommerce landscape that demands authenticity. Arteen Arabshahi, General Partner at Fika Ventures, highlighted Hue’s potential to bridge the “authenticity gap” as trust in digital content wanes.
Featured image: Credit: Hue
