Ex-Spotify Team Brings AI Recs to E-commerce

What Is Malachyte and Who Founded It?

Malachyte is an American startup founded by three former Spotify executives: Sidd Motwani (CEO), Ian Anderson (CTO), and Shivaditya Sinha (COO). Motwani and Anderson previously helped build Spotify's Vector AI — the behavioral intelligence infrastructure behind more than 90% of the platform's recommendations for 800 million users. Sinha brings a background in venture capital and consulting.

How Does the Recommendation Technology Work?

Instead of relying mainly on past purchases or logged-in user profiles, Malachyte's system updates online store shelves in real time using signals such as clicks, searches, and device context. The company calls this approach a "two-headed Vector AI" — it predicts what a shopper wants next and adjusts recommendations as browsing progresses, even with no account or purchase history.

For example, a search for work boots followed by clicks on steel-toe models prompts the system to surface work gloves and appropriate trousers higher on the page, while pushing dress shoes further down.

Who Can Use It and How?

Malachyte tested the technology with more than 20 enterprise clients across travel, food retail, and general commerce since 2024. The product went live with Fun.com in late 2025, and since June 2026 it has been available to Shopify merchants via native integration. Larger retailers can connect through an API.

What Results Have Been Reported?

According to Malachyte, Fun.com saw revenue per visitor grow 31% after adopting the tool. Workwear brand Brunt Workwear recorded an 80% increase in click-through rates to the shopping cart. Jordan Craig reported a 17% rise in revenue from new visitors — a notable figure given that 80% of its traffic comes from first-time users.

How Much Funding Did Malachyte Raise?

The company raised US$ 10 million in a seed round led by Bessemer Venture Partners and Gradient Ventures, with participation from Harpoon Ventures. The funds will be used to expand the distribution of its technology and hire product and commercial teams.