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Ex-Spotify Engineers Raise $10 Million To Bring AI Personalisation To E-Commerce

Three former Spotify engineers have raised $10 million in seed funding for Malachyte, a startup that aims to bring AI-powered personalisation to online retail.

The company was founded by Sidd Motwani, Ian Anderson and Shivaditya Sinha, who previously helped build Spotify’s recommendation technology. Their goal is to apply a similar approach to e-commerce by predicting what shoppers want in real time rather than relying on purchase history or demographic profiles.

Beyond Traditional Recommendations

Malachyte’s platform analyses browsing behaviour as customers interact with an online store, using signals such as searches, clicks, scrolling and items added to a cart to continuously refine recommendations.

According to Chief Executive Sidd Motwani, the system begins building a customer profile from the moment a page loads and becomes more accurate as the shopping session progresses. That allows retailers to personalise product rankings even for first-time visitors without requiring an account or previous purchases.

The company also considers contextual factors, such as the device being used or how a customer arrived at the website, to better understand purchasing intent.

Expansion Plans

Founded in 2024, Malachyte tested its technology with more than 20 enterprise customers across retail, travel and grocery before focusing on e-commerce.

The platform launched with Fun.com in late 2025 and has been available to Shopify merchants since June through a native integration, while larger retailers can access it via an API.

The $10 million seed round was co-led by Bessemer Venture Partners and Gradient, with participation from Harpoon Ventures. The funding will be used to expand the company’s commercial operations, strengthen product development and accelerate growth.

Cyprus Loan Growth Accelerates To 14% In September

Lending in Cyprus accelerated in September, with the annual growth rate of total loans reaching 14%, up from 11.8% in August. Deposits also recorded a stronger monthly increase, according to the Central Bank of Cyprus (CBC).

Total deposits rose by a net €697.1 million to €60.2 billion at the end of September. Total loans increased by €857.8 million to €29.6 billion, according to the CBC’s October 2026 Monetary and Financial Statistics.

Deposit Growth Strengthens

Deposits recorded a monthly increase of €697.1 million, more than four times the €171.5 million rise in August. However, the annual growth rate remained unchanged at 6.5%.

Deposits held by Cyprus residents increased by €639.9 million. Household deposits rose by €93.8 million, while deposits held by non-financial corporations grew by €373 million. Other domestic sectors contributed a further €173.1 million.

Annual Loan Growth Reaches 14%

Total loans increased by a net €857.8 million in September, compared with €114.6 million in August. The annual growth rate accelerated to 14%, up from 11.8% a month earlier.

Lending to Cyprus residents rose by €470.8 million. Loans to households increased by €52.2 million, while lending to non-financial corporations grew by €110.1 million. Other domestic sectors recorded a larger increase of €308.5 million.

The figures cover deposits and loans held by monetary financial institutions in September 2026.

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