Flagship raises $6 million to become ‘Canva of retail world’

Sydney-born retail tech startup Flagship will “double down” on its US expansion plans after raising US$3.75 million ($6 million) through a US seed funding round, as its founder Simon Molnar reveals a bold vision for “Flagship to be to the retail world what Canva is to design”.

The seed funding round was led by US-based venture capital firms Coreline and Veridical Ventures, alongside Australian firms Tidal Ventures and Macdoch Ventures.

Flagship’s announcement comes just six months after the digital visual merchandising platform officially launched into the US market and more than a year after the startup secured $2 million in seed funding to fuel its expansion efforts in Australia, the US and beyond.

The startup was founded by Simon Molnar, whose older brother is Afterpay co-founder Nick Molnar, to bridge the gap between e-commerce data and bricks-and-mortar retailers.

The platform allows physical stores to also access real-time data, including inventory levels, product views and conversion rates.  

Retailers have been commonly using Flagship for store-specific money mapping, analytics-driven product placement, and creating and optimising localised visual merchandising (VM) guides.

More than 600 stores globally are now using Flagship, including Australian brands like Peter Alexander, R.M. Williams, Accent Group’s Stylerunner and Jo Mercer, and US brands Vuori, Mejuri and Madhappy.

Speaking with SmartCompany, Molnar confirmed Flagship’s focus is on scaling the business, both in the US and Australia, while also building a global community for VM and retail professionals.

“This investment fuels our expansion, particularly our go-to-market capabilities in the US, and allows us to double down on research and development, including the integration of AI-powered recommendations, automation and data-driven VM solutions,” he says.

“We’re committed to shaping the future of phygital retail through innovation, education, and collaboration with leading educational institutions like Collarts in Melbourne where we have partnered to help breed the next generation of retail talent.

“We want Flagship to be to the retail world what Canva is to design — an essential, intuitive platform that transforms the industry.”

In-person retail interactions “more valuable than ever”: Molnar

Over the past 12 months, Flagship has grown the number of retailers using its platform by 357%, with the number of stores going live increasing by 758%.

Flagship now has 13 employees across Australia and the US, and the company plans to grow employee numbers by 25% by the end of this year.

The startup has also partnered with an undisclosed US performance apparel brand to enhance the in-store experience of the brand’s network of more than 80 stores.

Molnar describes the partnership as a “natural alignment”, as this brand “truly understand[s] the evolving role of physical retail and the strategic advantage that it plays”.

“In a world where digital content and AI are blurring reality, real-world experiences and in-person interactions are more valuable than ever. They see physical stores as a powerful community hub – places that foster engagement and brand loyalty.”

Molnar says one retailer working with Flagship had saved 7,000 casual hours annually, while another scaled its store count by 700% without adding to its VM headcount.

Brands like Peter Alexander have transformed manual, time-intensive processes like money mapping into automated real-time insights, saving over 590 hours per month, says the founder.

Reflecting on the last time he spoke with SmartCompany in September, 2023, Molnar says Flagship has achieved everything it set out to do in the time since.

“We have built, and continue to build, world-class product and engineering teams, along with an exceptional team overall,” he says.

“Our US launch has been a success, with several household brand names onboarded within just six months of launching in the market.”

Molnar adds that bricks-and-mortar sales are still driving a minimum of 70% of the revenue for the vast majority of retailers that Flagship is speaking to.

“Even for digital-native brands, while it might not always reach 70%, physical retail still represents a sizable share of revenue – enough to justify continued investment in stores,” he explains.

“Both traditional and digital-first retailers see the value in retail as a strategic advantage, reinforcing its importance in driving sales, brand engagement and customer experience.”