Startups

Turkish Company Loops AI Raises $3.5 Million to Develop Smart Search for E-Commerce

Loops AI, which develops AI-powered search and shopping solutions for e-commerce companies, has raised $3.5 million in a seed round backed by a16z Speedrun, NTT DOCOMO, and other investors. The company will use the funding to expand its engineering team, develop its products, and expand first into Japan, followed by Europe and Southeast Asia.

2026-10-16
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Turkish Company Loops AI Raises $3.5 Million to Develop Smart Search for E-Commerce

Turkish startup Loops AI announced the completion of a $3.5 million seed funding round, with participation from a16z Speedrun, the early-stage program of Andreessen Horowitz, along with NTT DOCOMO, Connecticut Innovations, Monday Capital, Alumni Ventures, and angel investors from Netflix and Google.

Founded in 2025 by İlker Selim Zorluoğlu, Ari Nazir, and Yusuf Bahadır, Loops AI is building an AI-powered search and product discovery infrastructure aimed at e-commerce companies. The company is already using its solutions with brands in Turkey, including Mavi, Boyner, A101 Ekstra, and Petrol Ofisi.

Search That Understands Intent, Not Keywords

Rather than relying solely on keywords and filters, the platform allows users to describe what they need in everyday language. For example, a user might request a shirt suitable for wearing with navy trousers at a business lunch instead of searching for the name of a specific product.

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The system processes the request using the product catalog, product information, and the brand’s business rules, then presents suitable options. The company’s portfolio also includes shopping assistants, tools for customer service operations, product data enrichment, virtual try-ons, and AI-powered voice applications.

What Will the Company Do With the Funding?

Loops AI plans to direct the investment toward product development and expanding its engineering team, deploying its solutions with more customers, and beginning its expansion into international markets. The company identifies Japan as its first international market, with subsequent plans to expand into Europe, led by Germany, and Southeast Asia.

The company says that integrations with customers’ catalogs, data sources, and existing systems help it develop features that can later be added to the product instead of remaining separate solutions for each customer.

Performance Metrics Need Additional Context

According to data published by Loops AI, customers who interacted with the product discovery solution at A101 Ekstra recorded an 83% higher conversion-to-purchase rate and a 77% higher add-to-cart rate compared with the comparison group. At Wee Baby, average basket value increased by 11% and average spending per customer by 26%, while 32% of users who used the solution made a purchase after their first question.

However, the company did not publish the period over which these results were measured or details on how the comparison groups were formed, so the figures alone are not sufficient to establish a generalizable impact across all stores.

A Path Beyond E-Commerce

Loops AI is also working to apply its infrastructure in sectors such as financial services and energy. Its long-term plans include connecting companies’ data, systems, and workflows to different AI models through a shared infrastructure, along with developing small language models tailored to specific enterprise use cases.

The round is significant because it provides a recently funded startup with the resources to expand its product from smart search into a broader layer for managing shopping interactions and enterprise data. However, the success of the expansion will depend in practice on the quality of data integration and business rules, as well as the company’s ability to deliver verifiable performance results beyond the initial use cases it has announced.

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What you need to know

Turkish company Loops AI has raised $3.5 million in a seed round to develop AI-powered search and product discovery solutions for e-commerce companies. It will use the funding to expand its engineering team, develop its products, and expand first into Japan, followed by Europe and Southeast Asia.

  • The round included a16z Speedrun, NTT DOCOMO, Connecticut Innovations, Monday Capital, Alumni Ventures, and angel investors.
  • The Loops AI platform allows users to describe their needs in everyday language rather than relying solely on keywords.
  • The company uses its solutions with brands in Turkey, including Mavi, Boyner, A101 Ekstra, and Petrol Ofisi.
  • Its products include shopping assistants, customer service tools, product data enrichment, virtual experiences, and AI-powered voice applications.
  • The company reported positive performance indicators among some customers, but the article notes that the lack of measurement periods and details about comparison groups limits the ability to generalize them.
  • Loops AI plans to apply its infrastructure in the future to sectors such as financial services and energy, while developing small language models for specific enterprise use cases.

FAQ

How much funding did Loops AI raise?

The company raised $3.5 million in a seed round.

What is the first international market Loops AI is targeting?

It is targeting Japan first, followed by expansion into Europe, particularly Germany, and Southeast Asia.

What types of solutions does Loops AI develop?

It develops solutions for search and product discovery, shopping assistants, customer service tools, product data enrichment, virtual experiences, and AI-powered voice applications.

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