Loops raises $3.5M seed for an AI operating system for e-commerce

Loops closed a $3.5M seed round from a16z speedrun, NTT Docomo, Connecticut Innovations, Alumni Ventures, and Monday Capital. The company built a unified platform that combines several AI tools into a single operating system for e-commerce — instead of retailers having to stitch together five separate products.

The problem is a familiar one: online stores are great at showing off huge catalogs, but bad at helping shoppers choose. Each component solves one task in isolation — search works on its own, Q&A is separate, descriptions are rewritten separately, try-on is separate too. Retailers are left to integrate all of it manually and hope the pieces don't break each other.

The idea for Loops came from the founders' own experience. Ari Nazir (CEO) and Ilker Selim Zorluoglu (co-founder and president) were on vacation in Bali when Ilker tried to buy a gift for his daughter. He messaged a seller, waited for hours, and never completed the purchase. They noticed the gap: people already talk to AI about what they need, while e-commerce is still stuck on keyword search. Nazir built the first prototype over a weekend. The company now works with 70+ clients and pilots, having processed millions of shopper sessions. 64% of pilots converted into paying customers.

Five components of the platform

• AI Search — natural-language search. Shoppers describe what they need the way they would to a friend. The system finds products without relying on keywords or store filters.

• Shopping Assistant — a built-in helper that answers questions on the spot and guides shoppers through their choices. It works 24/7 across every communication channel, with no hour-long waits for a reply.

• Product Enrichment — rewrites descriptions, attributes, and catalog data until every product is clear to both humans and AI.

• Virtual Try-On — closes the gap between browsing and buying.

• Marketplace Assistants — automated, branded customer support on online marketplaces.

The architecture creates a reinforcing loop: enriched data improves search, search feeds context to the assistant, and customer conversations surface gaps in product information. The result is an experience that feels like talking to a consultant who knows the catalog by heart.

Results from real-world data

Turkish retail chain A101 uses Loops to navigate its catalog and assist shoppers throughout the buying journey. According to Loops, sessions using the platform showed roughly 83% higher conversion than the control group (the company notes these are observed results, not a randomized test).

Fashion brand Mavi uses Loops for AI search and shopping assistance. Customers describe what they need by style, occasion, or size — the system guides them through the catalog and helps them decide.

From commerce to industry operating systems

Commerce is the first chapter. Loops believes the future of enterprise AI belongs to systems deeply embedded in individual industries — carrying the domain knowledge, integrations, agents, and governance needed for real workflows, rather than just wrapping a general-purpose model.

The next verticals are financial services and energy. In parallel, Loops is developing specialized small language models for tasks where domain knowledge and deployment constraints make a focused model better than a general one.

The goal is to make companies AI-native, where AI is woven into how the business runs rather than bolted on as a feature. Commerce is the first operating system. The others are already being built.