Instant in-store stock updates. How the Ukrainian startup Hot stock works
Reading mode enlarges the text, removes all unnecessary things from the page and allows you to concentrate on the material. Here you can turn it off at any time.
In our recurring Who Are These People segment, Vector offers founders an opportunity to discuss their projects, covering aspects such as their products, marketing strategies, monetisation, investments, and business plans. The focus this time is on the team of Hot stock, a Ukrainian startup that provides real-time inventory management and stock updates.
Editor-in-chief Yuliia Tkach interviewed Iryna Alfiorova, CEO and co-founder, about the product’s features, promotion, investments, and plans.
Conception
The startup was founded by Iryna Alfiorova, who has over a decade of experience in retail, business process automation, and IoT solution implementation. Her extensive background in inventory management laid the groundwork for her expertise in developing retail-focused software.
«The core idea for Hot stock was born out of a practical problem we directly experienced: the scarcity of real-time data on product availability within physical retail environments. We realised that conventional inventory management systems operate with a time lag, resulting in both lost sales opportunities and customer dissatisfaction. This led us to create a system that provides updates in real time», — Iryna commented. The project was rolled out in 2024.
Active implementation of the product is underway, with initial customers testing the system within their retail locations. As part of their scaling strategy, the team is actively negotiating integration with large retail chains.
The team is not providing information on the number of specialists working on Hot stock. Information suggests that, besides Iryna, the following individuals are contributing to the startup:
- Mykyta Alfiorov, co-founder. His professional background includes 17 years in the e-commerce sector. Notably, he previously headed the drug booking service at Apteki.ua (launched in 2022) and worked with GeoApteka;
- Dmytro Kostin, lead developer. His career spans 15 years within the software and electronics development industries.
Product and audience
Hot stock is a real-time B2B inventory management system. It uses IoT devices to gather data, which is then processed by its analytical platform.
Here’s how the system functions.
- The client connects the device inline between the barcode scanner and the POS.
- The device’s architecture ensures support for all existing barcode scanner technologies.
- Connecting the device requires no additional power source or internet connection.
Hot stock has the following functionalities:
- as products are scanned and sold at the cash register, the client receives information on items absent from the shelves;
- by providing real-time inventory counts, the system helps reduce excess stock and keep inventory levels low;
- it delivers a real-time assessment of the dynamic changes in product availability at each specific location.
«Our initial step was comprehensive market research to determine the fundamental problems within the retail landscape. We moved from concept to prototype, then engaged in real-world testing within partner stores, using the feedback to enhance the system’s functionality.
The development process was iterative, beginning with the concept, leading to the MVP, and currently focusing on scaling and integration with major retail chains», — the founder explains.
The testing protocol involved two key phases:
- laboratory evaluation of IoT devices and algorithms; and
- real-world testing in partner stores.
The process involved collecting real data, scrutinising the system’s information update cycle and adjusting algorithms to optimise accuracy levels.
«Our product strategy focuses on retail segments that present active growth and a significant opportunity for the deployment of innovative technologies. Our potential target segments:
- food and beverages;
- pharmacies;
- drugstores;
- pet supplies;
- DIY;
- alcohol;
- plumbing;
- auto parts;
- home goods;
- E-grocery;
- Quick Commerce services.
The Ukrainian Retailers Association reported 22,557 operating retail outlets as of November 2024.
The vast network of tens of thousands of supermarkets across Europe’s market includes both large international retailers and national supermarket chains. This market is notable for its coverage of different store formats, spanning hypermarkets, discounters, and neighbourhood supermarkets. Although market size varies from country to country, the general trend indicates a highly competitive environment and a proactive approach to integrating technologies for inventory and logistics optimisation.
Business model and investments
Hot stock operates on a B2B model, monetising its service by charging based on the volume of processed SKUs.
The co-founders are not providing information on their personal investment and external fundraising targets.
Plans
«Our project is now in the active implementation stage. We have our initial clients currently testing the system in their stores, and we are actively preparing for scaling. We are also actively negotiating integration with large retail chains», — summarised the co-founder.
More about this
Harnessing AI for competitor analysis. How the Ukrainian startup CompetAI works
Any article can be bookmarked on the site to read later.
