Konnecto Raises $21M For Path-to-purchase Optimisation Platform
Growth investment will fuel the expansion of Konnecto’s team and enable continued investment in innovation to capitalise on immense demand for its solution from enterprises globally. Konnecto, the prescriptive marketing platform pioneering the category of path-to-purchase optimisation, announced that it had secured $21 million in Series A financing led by PeakSpan Capital. Existing investors TPY […]
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Growth investment will fuel the expansion of Konnecto’s team and enable continued investment in innovation to capitalise on immense demand for its solution from enterprises globally.
Konnecto, the prescriptive marketing platform pioneering the category of path-to-purchase optimisation, announced that it had secured $21 million in Series A financing led by PeakSpan Capital. Existing investors TPY Capital, Mindset Ventures, Differential Ventures, SeedIL Ventures, and Magna Capital Partners also participated in the oversubscribed round, bringing the total capital raised by Konnecto to $29 million to date.
Konnecto has established a new category in marketing technology, prescribing highly targeted recommendations to increase online sales and optimise marketing ROI for brands including MassMutual, Coca-Cola, Mercedes Benz, eToro and many others. The company has tripled its client base in the past six months and will leverage the funding to expand its data science and engineering teams, as well as invest in the expansion of go-to-market infrastructure and headcount to capitalise on the overwhelming demand it is seeing for its platform.
In recent years, it has become increasingly difficult for marketers to determine which touchpoints influence consumers’ purchase decisions along their path to purchase. This challenge has escalated significantly with the ever-changing landscape of data privacy and the sunset of third-party cookies. Organisations are looking for a source of truth on what will drive impact and improve results in the online purchase journey against their competitors.
Struggling to solve this challenge, marketing teams spend many hours logging into various disparate platforms in the marketing tech stack, analysing data points that don’t provide them with the next best action to improve conversions. Marketing leaders do not need more data or SaaS tools; instead, they demand insight into what is working, what touchpoints are influential in improving ultimate conversion, and clear prescriptive recommendations on what to do today to drive better results.
Konnecto is the first platform that identifies the most impactful vulnerabilities in the full path to purchase that led consumers to convert with competitors. This is done by reverse-engineering consumer journeys that end up converting with the brand, its competitors or on a marketplace. Konnecto’s platform prescribes highly targeted and actionable recommendations across the entire digital marketing pie. This helps growth and marketing teams quickly focus on informed decisions and execution without requiring integrations across a brand’s broader tech stack. The platform was built without reliance on cookies and completely complies with global privacy regulations.
“Our investment in Konnecto is part of a long-standing thesis we’ve been developing centred around partnering with businesses that have demonstrated an ability to drive specific, tangible outcomes and significant performance improvement for marketers amidst an incredibly noisy vendor landscape and increasingly uncertain environment related to data privacy and global compliance mandates,” said Matt Melymuka, co-founder & managing partner, PeakSpan Capital. “Macroeconomic pressure is forcing companies to be more efficient as budgets are slashed across the board while still satisfying an expectation to execute at the highest level and generate attractively and continuously improving performance. That is a tall order. The value that Konnecto’s platform has delivered to large, demanding organisations across the globe is astounding. The company is paving the way in supporting a new approach to value creation for marketing organisations today, shifting focus from reactive monitoring to prescriptive action suggestions. The rapid growth and overall performance Konnecto has demonstrated to date are among the best we’ve ever seen and we’re privileged to partner with the team in this next phase of development and expansion.”
“Management teams, boards, and VCs want their companies to stop spending marketing dollars wastefully, while market uncertainty is causing businesses of all sizes to need rapid results while spending less,” said Erez Nahom, Konnecto CEO and co-founder. “Konnecto uniquely addresses rapidly-changing market conditions and the demand they place on enterprises by providing insights on the touchpoints that move the needle and what actions to take to drive conversion – maximising revenue in a quickly changing market. We look forward to our latest funding helping to scale our product for organisations that look to stop the customer acquisition guessing game and improve their marketing efficiency significantly.”
“We’d led Konnecto’s Seed round, and in a couple of years since, we’d seen the company succeed in pretty much every single parameter we’d hoped to see,” said Guy Yamen, co-founder and General Partner at TPY Capital. “The team had been showing demonstrable results in building a product addressing real-life marketing problems; growing a loyal base of world-class brands; and, not less importantly, doing so through a culture of constantly pursuing in-depth market understanding, joy in problem-solving, and capital efficiency even in years when this was considered counterintuitive. We’re excited and eager to see the expansion Konnecto will see with the recent round of funding.”
