Avataar, a startup backed by Peak XV and Tiger Global, has launched Velocity, a groundbreaking AI-powered video creation tool that can generate product videos directly from a product link. This innovation has the potential to disrupt the e-commerce industry, making high-quality video content more accessible and cost-effective for brands of all sizes.

The Velocity tool is designed to address the long-standing challenge of video creation in e-commerce, where companies often struggle to produce videos for every product in their catalog due to high production costs. By leveraging AI, Avataar's tool can generate clips in bulk, making it possible for brands to create videos for even their non-strategic products.

Avataar's founder, Sravanth Aluru, emphasized the significance of Velocity in an interview with TechCrunch. "We could cover entire catalogs and have videos created for all items in them through Velocity. This would improve customer experience and also drive better conversion through motion and storytelling around the product," he said. The startup has already seen success with clients like HP, Victoria's Secret, and Lowe's, who are using Velocity to generate product videos.

What sets Avataar's tool apart from others in the market is its ability to understand different sub-categories of products and attributes associated with them. This enables the tool to highlight specific features of a product, such as a hammer versus a smartphone, and create more engaging storytelling through video. Additionally, Avataar has built guardrails around brand safety and product inaccuracies to ensure the highest quality output.

The launch of Velocity marks a significant milestone in Avataar's evolution, as the company shifts its focus from interactive experiences and 3D models to AI-powered video creation. With over $55 million in funding, Avataar is well-positioned to capitalize on the growing demand for AI-driven video solutions in e-commerce.

Industry experts agree that the potential for AI-generated video solutions in e-commerce is vast. Amir Konigsberg, founder of discontinued e-commerce startup Twiggle, noted that video generation from product links is a natural extension of automating e-commerce pipelines. However, he cautioned that standing out in a crowded market and ensuring consistency and quality will be key challenges for Avataar and its competitors.

As the e-commerce landscape continues to evolve, Avataar's Velocity tool is poised to play a significant role in shaping the future of product video creation. With its ability to generate high-quality videos at scale, Velocity has the potential to democratize access to video content, enabling brands of all sizes to create engaging, informative, and aspirational product videos that drive conversions and customer loyalty.