Radar, a startup that uses ceiling-mounted hardware to track in-store retail inventory in real time, reached a valuation of over $1 billion after raising $170 million in a Series B funding round, according to CNBC.
The RFID-based startup, backed by American Eagle CEO Jay Schottenstein, now covers more than 1,400 stores
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Radar, a startup that uses ceiling-mounted hardware to track in-store retail inventory in real time, reached a valuation of over $1 billion after raising $170 million in a Series B funding round, according to CNBC.
Gideon Strategic Partners and Nimble Partners served as co-leads on the round, with Align Ventures also participating. American Eagle CEO Jay Schottenstein, who is also an investor in the company, said American Eagle was the first retailer to deploy Radar's technology across its stores.
Founded in 2013 by Spencer Hewett, Radar relies on radio-frequency identification, or RFID, tags read by hardware mounted to store ceilings. According to Radar, the system achieves a 99% read rate on tagged items. Originally, Hewett's vision centered on reimagining checkout — a direction that later shifted toward inventory management after he got off the ground through a fellowship associated with venture capitalist Peter Thiel.
The technology lets store employees locate specific products — including sizes and colors — in real time when a customer requests them. For retailers using Radar who also offer curbside or in-store pickup for online orders, cancellation rates have dropped as low as 3%, down from roughly 25%, Hewett said.
Beyond the shop floor, the platform gives managers tools to scrutinize incoming deliveries and catch inventory gaps before they compound. Hewett said shortfalls in a delivery — whether 80 units arrive when 100 were expected, due to a packing mistake or pilferage somewhere in the supply chain — often go undetected entirely, quietly draining sales and inflating out-of-stock counts. At one retail location that piloted the technology, shrink — a catch-all term for inventory lost to theft, administrative error, or damage — fell by 60%, according to Hewett.
"You don't have the labor hours to go and count every box that gets shipped, so you have to accept what they say is there and assume it's true," Hewett told CNBC. "With Radar, you actually have a real time check to make sure that it is true, and then flag it immediately if it's not."
Schottenstein said the platform has given American Eagle better inventory visibility and freed up staff to focus on customer-facing work. The company's customer base includes Gap $GPS's Old Navy brand and a range of other large chains, with its technology now deployed across upward of 1,400 locations.
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