Hue Beauty Inc., an artificial intelligence-powered platform for user-generated video content startup, announced today that it has raised $4.5 million in new funding to grow its reach and to develop new partnerships.

Founded in 2021, Hue helps brands and retailers embed TikTok-style shoppable videos on their e-commerce websites to give customers the confidence to add to their carts. The company’s AI-powered software-as-a-service platform combats low conversion rates on e-commerce sites by providing brands with personalized, user-generated video content that resonates with individual shoppers.

The platform helps brands embed shoppable, user-generated videos directly onto their e-commerce websites. Through the use of authentic videos from real users, Hue claims to boost engagement by helping consumers visualize products on people with similar attributes, such as skin tone or hair type.

Hue’s technology also allows shoppers to filter and view personalized content, increasing both confidence in purchases and time spent on sites. It says its clients, such as Credo Beauty LLC and Tatcha LLC, have reported significant increases in conversion rates and return on ad spend.

The company’s platform also offers integration and comprehensive content usage across digital channels and provides accurate AI-powered shade matching for beauty products. Hue’s AI-powered platform has seen growing engagement, with more than 4.1 million users interacting with its video technology and more than 6 million videos played through Hue’s integrations on brand websites.

“Thanks to TikTok, user-generated video content has transformed how customers shop online,” said co-founder and Chief Executive Janvi Shah. “Yet, eCommerce sites typically lack this type of authentic video content, resulting in poor conversion.”

“With more than 20% of all retail purchases expected to take place online this year and the eCommerce market expected to total over $8.1 trillion by 2026, brands need to provide user-generated video content that’s relevant to each individual consumer,” Shah added.

Fika Ventures and Underscore VC co-led the seed round, with Sequoia Scouts, The MBA Fund, Glasswing Ventures, Courtyard Ventures, Phoenix Fund Management Ltd. and Tristan Walker’s Heirloom Fund also participating.

Image: Hue