In 2020, Kathryn Wu was balancing her role as a product engineer at Pinterest with a new side venture: OhTea, a milk tea company. Her goal was simple—get local grocery stores and gift shops to carry her tea. However, navigating the fragmented retail market proved more challenging than anticipated, leading to OhTea’s eventual downfall. Wu struggled to locate potential retailers and their contacts, an issue that ultimately inspired her to tackle the problem head-on.
“This experience made me realize how difficult it is to find retail information efficiently,” Wu shared. “I was constantly juggling multiple tools and spreadsheets. I decided to address this pain point directly.”
This challenge laid the groundwork for Openmart, the startup Wu co-founded three years later. Openmart, co-founded with Richard He, offers an AI-driven solution to streamline business data aggregation. It positions itself as a more dynamic alternative to traditional tools like Zoominfo. By leveraging AI to scrape data from public filings, maps, and customer reviews, Openmart provides a comprehensive database of local businesses. Users simply input their desired business type, and Openmart delivers detailed sales leads, including contact names and information.
Wu and He’s partnership began during their time as Pinterest interns and was later solidified within an Asian entrepreneurship community. Their shared interest in entrepreneurship and their bond over their dogs—Wu's golden retriever and He’s lab—paved the way for Openmart's creation. Although Wu's initial aim was to boost her own side hustle, the duo quickly recognized a broader market need. They discovered that even large enterprises struggled with local business sales, prompting them to target this segment first.
“Our primary focus remains on local businesses,” He explained. “We recognize it as a significant pain point. Our AI solution is designed to enhance outbound sales and can eventually extend to other sectors.”
Launched late last year, Openmart recently concluded a successful $2.75 million seed round, backed by Y Combinator, Rebel Fund, Afore Capital, and other investors. The company, a participant in Y Combinator’s W24 cohort, has already attracted paying customers ranging from Fortune 500 companies to growing startups. Wu and He are intentional about their growth strategy, aiming to maintain control and avoid unnecessary dilution by carefully managing their fundraising efforts.
“We focus on raising just enough capital to get us to the next stage,” He said. “With AI increasing productivity, we can afford to build a lean, efficient team.”
While Openmart is currently dedicated to local business data aggregation, future plans include expanding into other areas. He emphasized that despite potential horizontal growth, the company will remain committed to its core mission: being the go-to expert for small and medium-sized business contacts.
