Gap acquires Israeli startup CB4
The company uses AI and machine learning tools to boost retail operations, increase sales and improve the customer experience
American retail giant Gap has acquired Israeli startup Context-Based 4 Casting (CB4). The valuation of the deal for the Tel Aviv-based company that uses AI and machine learning tools to boost retail operations, increase sales, and improve the customer experience through predictive analytics and demand sensing, wasn't announced. CB4 had previously raised $30 million. Investors in the company include Sequoia Capital, Pereg Ventures, and U.K.-based venture capital firm Octopus Ventures. CB4’s technology has been implemented by retailers including Levi’s, Urban Outfitters, Lidl, and Kum & Go.
This is Gap's first tech-based acquisition in Israel. As part of the acquisition, CB4’s team will join Gap as full-time employees.
Gap. Photo: Getty
CB4 was founded in 2013 by Prof. Irad Ben-Gal and Dr. Gonen Singer following an innovative research project at Tel Aviv University. Yoni Benshaul joined early to manage the company as a CEO. CB4 is headquartered in New York with offices in Tel Aviv and London.
“We believe artificial intelligence and machine learning will shape the future of our industry. Gap Inc. has experience working with CB4’s world-class data scientists, so we understand the impact and the wide applications their science can have across sales, inventory and consumer insights, as well as its potential to unlock value and enhance the customer experience,” said Sally Gilligan, Chief Growth Transformation Officer, and head of the Strategic Growth Office at Gap.
CB4 CEO Yoni Benshaul commented, “CB4’s AI helps lift sales and enhance customer experiences. As we join Gap Inc., I’m excited to see how our team can drive even broader and deeper impact at the company’s global scale.”