Radar, founded in 2013 by Spencer Hewett and backed by American Eagle CEO Jay Schottenstein, raised $170 million in its series B funding round, achieving a valuation exceeding $1 billion. The funding was co-led by Gideon Strategic Partners and Nimble Partners, with participation from Align Ventures.
Radar's technology, which utilizes ceiling-mounted hardware to read RFID tags with 99% accuracy, aims to solve critical inventory management issues faced by retailers. Schottenstein noted that American Eagle was the first retailer to implement Radar's technology, which has significantly improved inventory visibility and operational efficiency.
The technology addresses common retail pain points, such as ensuring product availability and reducing order cancellation rates for buy online, pick up in-store options, which have reportedly dropped from 25% to 3% for some clients. Additionally, Radar helps retailers manage shrink, which includes losses from theft and administrative errors, by providing real-time inventory checks.
One client reported a 60% reduction in shrink after adopting Radar's system. Overall, Radar's advancements in inventory management could lead to improved sales and profit margins for retailers, making it a significant player in the retail technology sector