Fast-growing Slovak company Luigi’s Box acquired their Czech competitor, Persoo. The multi-million euro acquisition will consolidate their position as the search optimization leader in the Czech and Slovak markets.
Founded in 2016, Luigi’s Box, which uses AI to provide e-retailers with personalized search and product recommendations, has been profitable for the last four years and was ranked in the Deloitte Fast 50 in Central Europe for two consecutive years. The company has earned its position among the world’s leading e-commerce search platforms and is moving into a new phase of growth with the acquisition of Persoo, which will be incorporated fully into Luigi’s Box.
“This opportunity has come at the right time in the evolution of Luigi’s Box. We’ve been working with Persoo on the acquisition for several months. We have a similar company culture, product, and vision for the future of e-commerce. We’re excited to have the Persoo team join us, bringing additional industry expertise and strengthening our position in Europe as we work towards new goals together. On the client side, the transition will be as seamless as possible. We’re confident that clients of both Persoo and Luigi’s Box will benefit from us joining forces, as they will now get an even better product,” said Gejza Nagy, co-founder and CEO of Luigi’s Box.
Both companies are in the business of developing personalized search and product recommendation for e-retailers, making full use of AI and ML capabilities. The success and growth of both companies has been recognized by the Deloitte Fast 50 ranking more than once. In 2023, for the second year in a row, Luigi’s Box was ranked among the fastest growing technology companies in Central Europe, and Persoo was ranked in the Technology Fast 50 for the Czech Republic.
Luigi’s Box has experienced several years of strong year-on-year growth, with more than 3,500 e-retailers now using their intelligent search. Together with Persoo, they will serve clients such as Alza, Muziker, Kosik.cz, pharmacy chains Benu and Dr. Max, as well as retailers like Makro and Mountfield. The integration of Persoo into the structure of Luigi’s Box will bring innovations and optimizations to the e-commerce market.
“Persoo and Luigi’s Box have been following and inspiring each other for several years. Over the years, the idea of joining forces came up several times, and the merger was completed at the end of last year. The product synergies will be a great benefit for our joint client base. I’m excited about Persoo joining Luigi’s Box, forming an even stronger European player. I look forward to combining our strengths, expertise, experience, and ideas,” added Pavel Pinkas, co-founder and CEO of Persoo.
For e-retailers, search optimization using AI and machine learning is key. On average, sales using this feature account for a quarter of their total turnover, and in some segments even more than half. When set up correctly, only 1 to 5 percent of searches end up with no results, according to Luigi’s Box’s experience. In contrast, for sites that don’t use optimization, the no-results average can be 10-20%, or as high as 40% in some cases. Additionally, Persoo’s solution has increased companies’ conversion rates from search by an average of 10-15%. The company has previously received investments from Presto Ventures and Lighthouse Ventures. Luigi’s Box investors include Neulogy Ventures and Leverage.
“We backed Persoo in 2019. Since then, the company has undergone many changes and developments that have propelled it forward – in terms of product, as well as the start of a successful foreign expansion. We’re happy to have played a part in their growth and believe that together with Luigi’s Box they will carry on this momentum across Europe,” commented Roman Nováček, partner of Presto Ventures, on the acquisition.
