A new system of e-commerce personalisation has broken all records for attracting investment in a private cloud start up. Now the inventors intend to use the money to expand beyond e-commerce into all areas.
Private cloud personalisation specialist Bloomreach has announced a recent award of $56 million of venture capital. Investors contributing to the Series D round of funding included Bain Capital, Battery Ventures, Lightspeed, New Enterprise Associates and Salesforce Ventures. As part of the same initiative Guidewire Software CEO Marcus Ryu was appointed to the BloomReach board.
BloomReach offers an alternative to companies who cannot afford to buy their way to the top of Amazon’s search listings. Since Amazon captures half of the first product searches made by consumers this leaves digital businesses with a massive financial barrier to marketability. Meanwhile the marketing technology sector has fragmented into 2,000 companies offering 2,500 products. Bloomreach claims it can demystify and simplify the choices with omnichannel intelligence and a single personalization platform.
It has two main applications, BloomReach Commerce and BloomReach Compass. The former uses BloomReach’s Organic Search and SNAP applications to boost online sales up to 40% by algorithmically optimizing user’s site experience, it claims.
Compass uses role-specific analytics providing machine-intelligence insights, key performance indicator management and action-tracking for marketers and merchandisers. It claims it can create an average $8,000 in revenue a month for clients on every action taken. The development of BloomReach Compass made it possible for BloomReach to expand beyond e-commerce, it claims, but it needs venture funding to bankroll that growth.
BloomReach said it plans to use the money to strengthen its big-data technology and expand globally into all digital business markets.
E-commerce is a $3.5 trillion market driven by marketing technology with personalization at the core, according to investor Neeraj Agrawal, general partner at Battery Ventures. “We are just in the fourth inning of the marketing-tech revolution,” said Agrawal. Instead of relying on outdated methods of personalisation with demographic or geographic data, BloomReach will provide workflow and transactional-oriented technologies to create one-to-one personalization at scale, it claims.
“There’s a ten billion dollar opportunity in marketing tech, and BloomReach has the expertise to understand, learn and apply big data to make every experience personal for all digital businesses,” said BloomReach CEO Raj De Datta.