Ex-Spotify Engineers Raise $10M for AI E-commerce Startup Malachyte
Sidd Motwani, Ian Anderson, and Shivaditya Sinha, who previously worked at Spotify, have raised $10 million in seed funding for their new venture, Malachyte. This startup aims to adapt Spotify's AI recommendation technology for the e-commerce world. The funding was primarily provided by Bessemer Venture Partners and Gradient, with support from Harpoon Ventures. Malachyte uses a unique 'two-headed Vector AI' to analyze customer behavior and intentions in real time, far surpassing traditional methods. After refining their technology since 2024 and working with over 20 clients in various sectors, they launched their platform in fall 2025. The CEO, Motwani, noted that many systems miss crucial user interaction signals. The new funds will help them grow and hire more leaders for their product and sales teams.
Key facts
- Malachyte raised $10 million in seed funding.
- Funding round co-led by Bessemer Venture Partners and Gradient, with participation from Harpoon Ventures.
- Founded by Sidd Motwani, Ian Anderson, and Shivaditya Sinha, former Spotify engineers.
- Malachyte's platform uses 'two-headed Vector AI' to predict shopper intent in real time.
- The AI system powers about 90% of Spotify's recommendations to its 800 million users.
- Malachyte has worked with over 20 enterprise customers in travel, grocery, and retail.
- Platform went live in fall 2025 with Fun.com.
- Available to Shopify merchants since June 2026 via native integration.
- Funding will be used to scale distribution and hire product and commercial leaders.
Entities
Artists
- Sidd Motwani
- Ian Anderson
- Shivaditya Sinha
Institutions
- Malachyte
- Spotify
- Bessemer Venture Partners
- Gradient
- Harpoon Ventures
- Fun.com
- Shopify