AI Mobile Commerce Platform Reactiv, Founded by Shopify Alums, Raises $7 Million CAD Seed Round

Toronto-based Reactiv, which specializes in an artificial intelligence (AI)-powered mobile commerce platform, has officially exited stealth mode with the announcement of a successful $5 million USD (approximately $6.97 million CAD) seed funding round. This round was led by Bonfire Ventures and received additional backing from several U.S.-based venture capital firms, including Foxe Capital, Anthemis Group, Daher Capital, and Alumni Ventures. Co-founder and CEO Ross Correia revealed the news through a LinkedIn post, noting that this latest fundraising follows an earlier, undisclosed pre-seed round of $625,000 USD (around $871,000 CAD) completed in February.

The pre-seed round involved contributions from various angel and institutional investors, while the seed round closed in July. Correia mentioned that some of the same angel investors participated in both funding rounds. With the recent investment, Bonfire Ventures Principal Jennifer Richard is set to join Reactiv’s board, further solidifying the startup’s growth trajectory.

Despite aspirations to secure funding locally, Correia expressed that the Canadian market has shown limited interest in the mobile commerce sector, prompting the company to seek support from international investors. Reactiv aims to empower ecommerce merchants by providing a no-code mobile app builder equipped with AI-driven customization tools. These features allow merchants to generate mobile apps from existing websites and enhance customer engagement and sales conversion capabilities.

Current clients of Reactiv include notable brands such as Campmor, Missouri Star Quilt Company, Top of the Mornin’ Coffee, and Canadian online perfume retailer FragranceBuy. The platform is available through the Shopify app store, with pricing set at $499 per month for standard access and a premium package at $4,999 per month, which includes developer kits.

One of Reactiv’s key advantages is its unique proposition that enables brands to dynamically update their mobile app content simply by making changes to their website. As Foxe Capital General Partner Ruth Foxe Blader highlighted in a blog post, this feature significantly reduces the time and costs associated with maintaining two separate content platforms.

Among its innovative offerings is Reactiv Clips, a tool that allows brands to create fully functional sections of their app within advertisements or social media posts, eliminating the need for customers to download anything. These Clips can also send push notifications to users who interacted with the post, aiming to convert potential sales that may have been abandoned.

Founded in 2023 by innovative entrepreneurs Michael Pezzi, Vikash Jha, and former Shopify executives Correia and Zack Elias, Reactiv emerged as a dynamic bootstrapped startup. Initially comprising a small team of just ten individuals, the founders demonstrated exceptional commitment to their vision. They undertook significant personal sacrifices to support their venture, including liquidating various assets, cashing in their Shopify stock, and exhausting their credit lines and cards, as detailed by Correia in a recent LinkedIn update.

This remarkable determination and resourcefulness have not only laid a solid foundation for Reactiv’s growth but also positioned the company to make a significant impact in the evolving mobile commerce landscape. As they navigate challenges and opportunities, Reactiv’s journey exemplifies the spirit of entrepreneurship and the potential for innovation in the tech industry.