Retail Rocket, a marketing automation startup, secures $24 million in funding for expansion efforts.

Table of Contents

Introduction

In a significant development in the retail technology space, Retail Rocket, a retention management platform for brands, has announced that it has raised $24 million in a Series A round led by Cyprus-based private equity fund Flintera. The company also revealed that it had acquired SailPlay, a startup developing software to help retailers build loyalty programs and send mass message campaigns.

About Retail Rocket

Retail Rocket was founded in 2012 by business school classmates Nick Khlebinsky and Andrey Chizh, who’d attempted but failed to gain traction with several startups. The learnings from their previous efforts were the springboard for Retail Rocket, which after multiple pivots eventually grew its customer base to more than 1,000 companies, including Nintendo, Puma, and Decathlon.

CEO’s Perspective

"We’re thrilled to have raised $24 million in this Series A round," said Nick Khlebinsky, CEO of Retail Rocket. "The digital marketing world is growing very fast, and the demand for highly skilled professionals is constantly increasing. The complexity of digital marketing tools is booming too — just several years ago we couldn’t imagine the technologies we use today."

What is Retail Rocket?

Retail Rocket uses a mathematical model to segment first-time buyers of a company’s product. By analyzing their actions — for example, the links they click on — the platform attempts to figure out their wants and preferences.

Key Features

Segmentation: Retail Rocket uses a mathematical model to segment first-time buyers of a company’s product.
Campaign Management: The platform offers tools for campaign management like email marketing and web-based push notifications.
Personalization: Retail Rocket has an engine that attempts to identify the best timing and communication channel (e.g. SMS) to make personalized offers.

About SailPlay

SailPlay, a startup developing software to help retailers build loyalty programs and send mass message campaigns, was acquired by Retail Rocket as part of its Series A round. Founded in 2013 by Leonid Shangin and Yakov Filippenko, the company offered services to collect customer data and leverage it to create games, texts, and tasks designed to encourage repeat business.

Acquisition Details

Retail Rocket’s acquisition of SailPlay marks a significant expansion of its capabilities in the retail technology space. The terms of the deal were not disclosed, but sources close to the company told TechCrunch that Retail Rocket has $50 million set aside for acquisitions alone.

CEO’s Statement

"The efficiency of Retail Rocket products surpasses those of international competitors," said Sergey Vasin, partner at Flintera. "We expect that the global e-commerce market will continue its growth at more than 10% per annum, with Latin America leading the race."

Market Outlook

The retail technology space is growing rapidly, driven by increasing demand for digital marketing tools and services. Retail Rocket’s acquisition of SailPlay is a significant development in this space, marking a major expansion of its capabilities.

Key Statistics

Global E-commerce Market Growth: 10% per annum
Latin America E-commerce Market Growth: Leading the race in global e-commerce market growth
Retail Technology Space Growth: Rapidly growing driven by increasing demand for digital marketing tools and services

Conclusion

Retail Rocket’s $24 million Series A round and acquisition of SailPlay mark a significant development in the retail technology space. With its expanded capabilities, Retail Rocket is well-positioned to capitalize on the rapidly growing global e-commerce market.