Augmodo, a startup using spatial AI to improve retail inventory accuracy, is addressing a critical pain point for retailers and brands: the millions in lost sales due to overstocks, out-of-stocks, and returns. CEO and Founder Ross Finman, whose background includes a stint at Niantic Labs (creators of Pokémon Go), explains how the company's wearable SmartBadges help retail associates passively scan store shelves while performing their normal duties, building real-time 3D maps updated dozens of times daily.
The technology, which Finman describes as adding "two years of experience to every retail associate," aims to reduce costly inventory errors. For example, during the 2022 baby formula shortage, Finman and his wife drove across Seattle searching for formula, inspiring him to create a solution that provides real-time shelf data. Augmodo's SmartBadges, equipped with cameras, capture inventory conditions as associates walk aisles, identifying out-of-stocks, pricing compliance, and planogram adherence without requiring additional training.
Spatial computing, Finman notes, digitizes interactions between people, computers, and environments to optimize actions. He cites Pokémon Go as a prime example, where digital elements merge with the real world. For retail, this translates to improved inventory tracking and reduced auditing costs. "If products are not on the shelf, or worse, are on the shelf and not found, those are lost sales that may take days or even weeks to address," Finman says. Augmodo's system alerts associates in minutes, preventing lost sales and wasted marketing spend.
The company recently announced a $37.5M Series A funding round led by TQ Ventures, with participation from existing investors including Lerer Hippeau and NewFare, and new investors Arena Holdings and Jefferson River Capital. Finman says the raise was driven by overwhelming inbound demand: "We literally did not have the bandwidth to support half of them." The funds will be used to scale technology to handle hundreds of stores in the next year and over a thousand in 18 months.
Finman, who holds a PhD from MIT and founded his first startup, Escher Reality (acquired by Niantic), sees spatial AI as a tool to augment, not replace, physical workers. "Everyone is talking about AI agents replacing knowledge workers, but spatial AI is going to augment the physical workforce," he says. Looking ahead, he envisions SmartBadges evolving into smartglasses that enhance consumer shopping, such as helping shoppers find products or check allergen information instantly.
Retailers have responded positively, Finman notes, because Augmodo requires no operational changes and leverages existing staff. With low capital expenditure and strong inbound interest, the company is poised for rapid growth. "We feel very fortunate as we continue to expand both domestically and internationally," he adds.
