US AI Shopping Startup Phia Raises $35 Million to Reinvent Online Retail Experience
US-based startup Phia, which develops an AI-powered shopping agent, has successfully raised $35 million in new funding less than a year after its launch, underscoring strong investor confidence in its fast-growing business model.
Phia aims to reinvent the online shopping experience through a mobile application and a browser extension that enable users to compare prices, identify cheaper alternatives—including resale and second-hand items—and receive recommendations for similar products from more affordable brands.
Since its launch, the company has recorded remarkable growth, achieving an elevenfold increase in revenues and attracting hundreds of thousands of monthly active users. More than 6,200 retail partners have also joined its platform, reflecting rapid adoption across the e-commerce ecosystem.
Phia’s business model is based on earning a commission from sales completed through its platform under partnerships with brands. The company provides marketing data demonstrating its ability to increase average order values, improve customer acquisition, and reduce return rates.
The startup has also benefited from the strong social media presence of its founders, whose content reaches millions of followers, helping accelerate user growth and appeal particularly to younger demographics.
Phia plans to deploy the new funding to hire machine learning engineers to further develop what it describes as a “fully integrated shopping agent,” offering a highly personalized experience. This includes clothing recommendations tailored to individual tastes, body measurements, and even items already present in a user’s wardrobe.
Regarding data usage, the company emphasized its commitment to user privacy, noting that all collected data is aggregated and anonymized, solely to enhance search efficiency and deliver optimal product recommendations more quickly.
Phia is betting that AI agents will play a central role in the future of e-commerce by simplifying complex shopping processes and transforming them into a more seamless and personalized experience—bringing enjoyment back to online purchasing.