Toronto company raises $2.1M to help SMBs combat inventory losses

Moselle, a Toronto-based, AI-powered inventory planner and procurement manager for small- and mid-sized e-commerce brands, has closed a seed round, raising $2.1 million.

Moselle will use this funding to further develop its AI-powered inventory forecasting, production planning, and purchasing suite — providing underserved SMBs with the tools needed to drive operational efficiency.

“Small- and mid-sized businesses — many of which are bootstrapped — account for the vast majority of the CPG market. Yet, almost all leading inventory management tools cater exclusively to enterprise companies,” said Lakhveer Jajj, founder and CEO of Moselle.

According to a 2023 study by IHL Group, this ultimately costs brands $1.77 trillion in accumulative inventory distortion — a disproportionate amount impacts SMBs as these tools are ill-equipped to meet their needs.

“Smaller, fast-growing brands have been left overpaying for a complex, enterprise inventory management system (IMS) that requires expert resources or managing inventory in spreadsheets,” said Jajj. “Moselle is filling this market gap by providing SMBs with an affordable AI-powered inventory solution that they can customize to their business’s exact needs, using modular components.”

Moselle’s customizable solution, which uses proprietary machine learning, helps prevent overproduction and underproduction through automated inventory management, saving SMB merchants thousands of dollars and up to 100 hours per month.

“This is a huge opportunity. We see every day the challenges fast-growing consumer brands face in managing their inventory, and getting it wrong can lead to significant cash flow issues and poor customer experience,” said Mike Martin, director of investment at True. “That’s why we’re excited to partner with Moselle on their mission to help all brands leverage the power of AI to solve this problem.”

Merchants have purchased more than $50 million in inventory value using Moselle’s automation suite, which includes accurate demand forecasting, streamlined purchase order workflows and real-time data reporting across their supply chain.

In the near future, Moselle said its customers can expect:

• Advanced AI to further automate manual work for merchants
• New, automated collaboration and demand forecasting features
• Tools for optimizing cash flow and securing financing

“This fundraise is the first step toward democratizing AI-powered inventory planning and equipping brands of all sizes with the tools needed to automate and scale their operations,” said Jajj.

The round was led by AQC Capital and MaRS Investment Accelerator Fund, with participation from True, Rebellion Ventures, Highline Beta, Top Knot Ventures and Singh Capital.