12 Mar 2025
Why Neon Invested

4 Min Read

Why Neon Invested in 1DigitalStack

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Rohit and Tarun, co-founders of 1DigitalStack, discovered a fundamental challenge in the world of e-commerce. E-commerce is Data-Rich, But Insight-Poor.

Online retail is the exact opposite of offline retail when it comes to data. In offline retail, data is scarce. In online retail, data is overwhelming.

Imagine a global brand selling across dozens of e-commerce platforms(like Amazon, Walmart, Lazada) in multiple countries. Every day, these platforms generate millions of data points on product performance, pricing competitiveness, shopper behavior, and advertising effectiveness.

Yet, most brands lack the necessary tools and in-house expertise to turn this data into insights. Without the right tools to gather actionable insights, marketing teams are forced to make critical decisions based on gut feel rather than data.

Without clear insights, marketing teams either overspend on ads that don’t convert, underinvest in the right opportunities, or lose market share to digital-native competitors who optimize in real time.

Post-COVID, e-commerce has become one of the largest sales channels even for traditional brands. Large brick and mortar brands adapted but not in the most effective way.

In this new world, traditional consumer brands are not competing with just other legacy brands but also with new-age brands who have leveraging data in their DNA.

But even for the largest consumer brands, their e-commerce performance remains a black box. Looking inside the black box isn’t enough. Brands need a system that continuously translates data into actionable insights.

The brands that solve this challenge will win in e-commerce. And the opportunity is massive:

  • The global serviceable market for digital shelf analytics and media automation stands at $7 billion today and is projected to reach $15 billion by 2030.
  • Approximately 10% of media spend goes toward analytics and automation tools, a $25 billion market.
  • Retail media has grown into a $250 billion market globally.

Data is the new oil but like crude oil. It needs to be refined and delivered through the right systems to power business decisions. Without the right systems, data remains just a raw resource with unfulfilled potential.

Major brands have tried solving it by pulling spreadsheets from various marketplace dashboards, generic business intelligence tools, and armies of analysts manually compiling reports. But this has many limitations:

  • Silos: Data from Amazon doesn’t talk to data from Walmart which doesn’t connect to data from regional marketplaces like Lazada or Mercado. This doesn’t give brands a complete picture.
  • Slow: Reports take days to compile, but the market shifts in hours, forcing brands to be reactive instead of proactive.
  • Manual: Teams waste thousands of hours collecting data instead of acting on it..

This problem is only getting worse. With hundreds of marketplaces globally, each with its own data structures, ad systems, and performance metrics, brands need a system to unify and act on data fast.

Rohit and Tarun built 1digitalstack to solve exactly this problem. A lot of existing solutions focus on just one piece of the puzzle. Some do only analytics, some only automation. Some only cover certain marketplaces or regions. But Rohit and Tarun have built 1digitalstack as an integrated command center for e-commerce businesses.

They do this by equipping the platform with three fundamental capabilities:

  1. Data Acquisition Technology: Proprietary systems that work across 220+ global marketplaces, capturing comprehensive data irrespective of platform structure or language.
  2. AI-Powered Analytics: Advanced algorithms that transform raw data into actionable insights, helping brands understand both what is happening to their performance and why it’s happening.
  3. Automated Execution: API integrations that close the loop by enabling brands to take immediate action directly from the platform, eliminating lag time between insight and execution.

These capabilities enable 1Digitalstack to act as a central hub for brands to manage everything. From planning strategies to activating them on platforms, and then measuring the results all in one place.

This closed loop between data collection, analysis, and execution creates a flywheel effect: better data leads to better insights, which enables more effective actions, which generates improved performance data, and so on.

Their digital shelf analytics provides brands with a consolidated view across all marketplaces, while their media automation engine optimizes advertising spend in real-time based on performance data.

The results are impressive. Businesses adopting 1digitalstack see:

  • 21% improvement in sales within the first 90 days
  • Thousands of hours saved through automation
  • 30% reduction in cost of sales

HP, Unilever, Colgate, and Nivea are some of the global brands using 1digitalstack to change how they do e-commerce. Today $300+ million in annual advertising spend is managed through 1digitalstack.

As e-commerce continues to grow and generate more data, the need for unified intelligence and automation will only increase. 1digitalstack is well-positioned to capitalize on this trend, with a proven product that delivers measurable results.

We’re proud to back Rohit, Tarun, and the entire 1digitalstack team as they build next-generation intelligence systems for global consumer brands.

Siddhartha Ahluwalia

Siddhartha Ahluwalia is the Managing Partner at Neon Fund and host of The Neon Show, one of the top business podcasts focused on the India-US startup ecosystem. He previously founded Addodoc (a B2B SaaS CRM for pediatricians) and Babygogo (a healthtech startup acquired by Sheroes). He later worked at Prime Ventures and led the SaaS Ecosystem at AWS India before starting Neon Fund. With deep expertise in 0-1 startup building, he helps founders scale B2B SaaS companies in the US from $0 to $10M ARR.

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