Tiger Global and Blackbird-backed AI-powered retail startup Hivery placed in administration

The books for Red Analytics, trading as Hivery, were handed to Christopher Johnson and Andrew McCabe at Wexted Advisors in Sydney on November 6. A first meeting of creditors is scheduled for Friday, November 15.

Wexted has not responded to Startup Daily’s request for comment.

Founded in 2015 by former Coca Cola execs Jason Hosking (CEO), and Franki Chamaki (head of marketing)  and data scientists Dr Menkes van Den Briel and Dr Matt Robards. It grew out of a hackathon that brought them together the previous year. The startup’s proprietary machine learning and applied mathematics algorithms were co-developed with CSIRO’s Data61.

The platform uses AI to optimise category management and merchandising for retailers. The cap table included Coca-Cola, who kicked the business off with $1.5m in its launch year.

Having AI in the mix that attracted investors for a US$30 million (A$43.2m) Series B in mid 2022 at a time when most VC has shut their wallets. The round was led by US fund Tiger Global during its Australian cash splash, with support from  Blackbird and AS1 Growth Partners, and OneVentures, which supported the startup in 2021 with an undisclosed venture debt facility from its 1V Venture Credit Fund. Second Quarter Ventures also bought in during the Series B. 

The previous raise was an $8 million in Series A funding, led by Blackbird in August 2020, having backed the company’s Seed round. All up the startup raised $62.8 million. In 2019 it was being championed by Austrade after being named the winner of the technology and innovation category in the NSW Export Awards. The startup won a 2022 Premier’s NSW Exporter of the Year award for advanced technologies. US retail giant Walmart was among its clients.

Hivery launched an AI-driven SaaS platform at the start of 2024, but trouble at mill began to emerge weeks later.  Blackbird invested across three funds and in March, reportedly slashed the value of one investment by 47%, from $11.4m t0 $6m. Another worth $17m, was written down to zero earlier this year.

Blackbird and AS1 reportedly tipped in another $3.8 million in April.

Three of the four cofounders left the company’s board between April and July, leaving CEO Jason Hosking to run the business with Blackbird partner Niki Scevak on the board along with Andrew Stead.

Hocking said they “gave it everything but unfortunately it wasn’t our time”.

“Hivery’s amazing and talented team never stopped fighting, and we continued to have the support of our partners, investors, and loyal customers right up to the end,” he said.

“Thank you to all who were part of this incredible journey. We walk away with our heads held high.”

Menkes van den Briel took a “leave of absence” saying the company was headed in a new direction and “my personal motivations have started to diverge with where we are heading.”

Matthew Robards, who has a PhD in machine learning and is a volunteer rural firefighter, is now the founder and CEO of an AI-driven bushfire management startup called FiSci 

A spokesperson for Blackbird said they are proud of their involvement with Hivery.

“And thankful for all the hard work done by the founders and team over the years,” they said.

“This is not the result any of us wanted, but this is the nature of venture and the portfolio approach allows the model to play out and be tolerant to cases like this.”