TORONTO – (COMMERCIAL THREAD) –Snapcommerce, the messaging-driven mobile commerce platform that connects price-conscious consumers to the best mobile promotions, today announced it has closed a US $ 85 million growth cycle to bring total capital raised to more of US $ 100 million. The round was co-led by Inovia Capital and Lion Capital with participation from Acrew DCF, Thayer Ventures and Full In Partners, and included existing investors Telstra Ventures and Bee Partners. Snapcommerce will use the investment to expand into new consumer verticals by executing its broader vision of improving the way people shop on their phones.
Snapcommerce is a flexible, AI-powered, vertical independent platform that uses messaging to personalize the mobile shopping experience and deliver the best promotional prices. Snapcommerce is expected to exceed US $ 1 billion in total mobile sales in 2021. To date, over 100 million messages have been exchanged with over 10 million customers through the Snapcommerce platform.
Snaptravel, Snapcommerce’s travel and hotel product, has saved consumers over 100,000 hours of shopping time and over $ 75 million in direct savings. A global source of inventory has enabled consumers to make reservations in more than 10,000 cities in more than 150 countries.
“Even during the pandemic, an exceptionally challenged travel market, Snapcommerce was able to build trust with consumers, which naturally boosted hotel and airline loyalty and sales,” said Chris Arsenault, Managing Partner at Inovia Capital. “We anticipate that pent-up demand for post-pandemic travel will provide favorable winds for the Snaptravel product to continue and accelerate its growth. Success during the pandemic does not only mean the strength of their leadership team, business model and platform, but shows incredible growth potential in many other consumer markets, which is supported by a new wave. powerhouse of mobile buyers. ”
Snapcommerce sits at the intersection of the growing purchasing power of Millennials and Gen Zs and an explosive growth trend in mobile-centric behaviors. This demographic is estimated to spend 2.5 hours (GlobalWebIndex, Q2 2020) per day on messaging apps, and over 80% of these young consumers prefer to shop on mobile devices (App Annie, July 1, 2020). Gen Z incomes are also expected to reach $ 33 trillion by 2030 and account for more than a quarter of all global income. By 2031, the youngest generation will exceed the purchasing power of Millennials according to Bank of America.
“Merchants will undoubtedly have to move from e-commerce to m-commerce and Snapcommerce’s approach is unique in leveraging messaging to enable brands to deliver personalized promotions directly to customers,” said Sherif Guirgis. , partner of Lion Capital. “By delivering AI-based offerings, merchants are able to improve conversion rates, increase profitability, and most importantly, build loyalty and build loyalty. We are excited to partner with Hussein, Henry and the entire Snapcommerce team. ”
“We are excited to continue to support Snapcommerce as they revolutionize e-commerce for the masses with sophisticated AI and messaging. The company’s record-breaking growth and resilience position it well for the future and fits well with our fund’s track record of supporting high-growth consumer technology companies with solid foundations to go public, ”said said Yash Patel, general partner at Telstra Ventures.
Snapcommerce streamlines a complex and costly “invisible” marketing and distribution network within the ecommerce ecosystem to deliver value to merchants and consumers. For a merchant to reach a customer and generate a sale, marketing and distribution can increase the price of an item by 35%. By offering private and personal rates on messaging, Snapcommerce cuts the “middleman” costs associated with affiliate marketing, sourcing, referrals, executions, and loyalty programs.
“At Snapcommerce, we’ve streamlined the interrupted process of finding the best prices on mobile,” said Hussein Fazal, co-founder and CEO of Snapcommerce. “Instead of constantly browsing or trying different coupon codes and reward cards, we centralize and connect every touchpoint throughout the buying and processing journey. It makes finding the right item for the right price as easy as texting a trusted friend on your phone.
For more information visit www.snapcommerce.com.
Snapcommerce is a message-driven commerce platform that uses AI to connect price-conscious consumers to the best promotions on mobile. Snapcommerce is on track to surpass $ 1 billion in total mobile sales in 2021. The company’s flagship product, Snaptravel, has great travel deals through SMS, Messenger, and WhatsApp. Snapcommerce was co-founded by serial entrepreneur Hussein Fazal and former Google engineer Henry Shi. For more information visit www.snapcommerce.com and www.snaptravel.com.