Series A Interview: Kaddra

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Kaddra is a white-label automated marketing solution that is looking to revolutionise retargeting by allowing retailers to engage and upsell to their customers. They are currently looking for $5 million Series A funding, to support strategic hires and acceleration of European expansion. 7startup founder Amit Khanna spoke with Quentin to discuss all things Kaddra, including what they see in store for themselves in the future.

Words from the CEO

Quentin Chiarugi

“Kaddra is, first and foremost, a team of very experienced individuals,  with 80+ years of experience in running startups, building cloud technology, successful exits, SaaS sales, B2B marketing and customer service.

From Disney (NYSE: DIS) to Shutterstock (NYSE: SSTK) the team has been executing commercialisation strategies and product implementation with the very best and has a solid understanding of where the company should go.”

Both Will and I have a strong foundation in startups from launching to a successful exit. Will was the brains behind eBUS Technology which was later acquired for $100m, twice the company value in less than 3 years, and I previously raised over USD 30m for various businesses from startup to IPO.

“Our complimentary experience is the perfect mix for us to take Kaddra global.

We share a common vision of how customer engagement needs to evolve.

We know how frustrating it is for people to go through bad customer experiences, even from the largest brands, and our mission is to ensure we provide the tech that can make a difference in people’s everyday lives.

We are the future of Martech making retargeting a strength for any business using our solution, and we will help companies step into the world of wearables, voice assistants, beacon tech, car OS and much more, where customers are expecting to find them.” 

Since March 2020, Kaddra has been a remote-work environment, and we are committed to creating an environment where our employees can balance their personal and professional life.

“What drives myself, Will and our collective team is the opportunity that Kaddra can own this space and become the critical tool for any eCommerce in the world to operate efficiently. 

  • Today we serve 100+ clients in 20+ sectors, including LVMH cosmetic brand MakeUp Forever and DHL Gift Services.
  • Our clients have achieved up to 87% sales conversion and increased revenues up to 9 times using our retargeting engine.
  • Our growth in Q1 2022 was +70% in MRR and +43% in new clients, with a 15.8% client conversion rate. Kaddra has a working environment that breeds creativity driving towards our mission to make Kaddra a martech global leader.”

#martech #retargeting #SaaStechnology #ecommerce #loyalty #customerengagement #digitalsales 

Interview with the Founder:

Amit: So tell me about Kaddra – where did it all begin with Kaddra?

Quentin: We were originally looking for technology to support the fast-paced growth of our luxury distribution business across Asia and Europe, however, Will and I could not find a software that could provide a high touch marketing on mobile devices. 

Our clientele was majority UHNW, a very demanding space when it comes to marketing, so we needed to ensure the technology would be adaptable to their high standard needs. So we decided to build the software ourselves and started to use it internally. 

But the demand for Martech technology was growing fast, we decided to spin off the tech company, which became Kaddra, and we converted the software into a SaaS white label solution to bring the most advanced retargeting engine to the masses. 

Amit: Great, can you explain what Kaddra does in a few sentences?

Quentin: Sure, Kaddra is a white-label automated marketing solution that allows retailers to engage and upsell to their customers.

Our smart push retargeting using deep behavioural data turns lost sales into untapped revenue. Our vision is for merchants to retarget their customers anytime, anywhere on multiple devices.  

Amit: The vision is fantastic, so why does the world need Kaddra?

Quentin: Out of the 26 million eCommerce sites globally, less than 1 million have revenue above $1k per year, largely due to the lack of smart and automated retargeting solutions available in the market today.

Billions of dollars are spent every year on third-party data marketing with lukewarm results, so new solutions focusing on first party data are a necessity and Kaddra is leading the race.

With over 71% of people churning when accessing a brand digital store on their mobile devices,  businesses routinely miss out on huge revenues by failing to retarget these potential customers before they make a purchase. 

Through the use of deep behavioural data, we use customer’s actions and interests to retarget them at the right time with the right message, and on the right device.

The average human now uses an average of 9.4 devices, which are all operating with apps. The change of customer behaviours to move away from browsers to the App Stores is driven by the increased usage of mobile devices.

So retailers must be at the cutting edge of marketing technology and only an automated solution like Kaddra can provide that edge, covering either the lack of digital expertise for small operators or the need to serve very large customer bases for the large ones. 

Amit: There must be competition, what sets you apart?

Quentin: We’re revolutionising the retargeting industry because we focus on first-party data and our unique combination of white-label mobile storefront and marketing engine, allows us to retarget users before and after they make a purchase or even register.

We are the only solution to use deep behavioural data that we collect to feed our proprietary retargeting engine. With a plug & play and fully automated model, it means that retailers don’t have to do a thing once the system is set up and they can enjoy huge ROI as it runs the campaigns in the background. 

Additionally, Kaddra is the only eCommerce agnostic solution, providing its capabilities to Shopify, Woocommerce, and Magento at the moment and many more in the months to come. 

“Our unique combination of white-label mobile storefront and marketing engine, allows us to retarget users before and after they make a purchase or even register.”

Using campaign tags, usage data, and device diversity we can ensure the ‘smart push’ reaches users at the most relevant time with the most relevant message. 

Unlike our competitors, the tools (storefront and marketing) are core to our solution and do not require additional plugins, so we can remain the most competitive pricing in the market and still enjoy solid margins. 

Amit: Wonderful, but why are you so confident about disrupting the industry, let’s talk about your target market and the opportunity?

Quentin: Our target market is the eCommerce retailers that find themselves spending far too much money on advertising and still suffering from low performing online stores.

The truth is that their initial push is probably successful in bringing people in front of their products but unfortunately all these efforts are wasted due to the lack of smart retargeting from the very start of the customer’s journey.  

In 2022, there are over 26 million eCommerce sites worldwide. The potential for Kaddra to provide these businesses with a game-changing solution is extremely exciting. 

Our automation is also a key to our target market. It can be very useful to a local store with 1k downloads on their app and no resources to operate a digital marketing tool, or it can help scale personal retargeting to retail powerhouses operating worldwide with millions of app users.

Amit: How has your journey been so far, what challenges have you overcome as a company and as a founder?

Quentin: The journey has been extremely fast-paced, with Covid the world to a complete stop, and the huge growth of online retail ALL in a short period of time.

A lot of changes have happened in eCommerce platforms and we had to ensure our tech adapted, we figured out the most important requirements with our customers, the retailers. 

Retargeting was by far the most critical, so we decided to double-down on building a stronger, smarter and more efficient retargeting engine, which now will be used by retailers all over the world. 

A lot of startups have been suffering from the lack of engineers and many had to compromise on their tech,  but we were very lucky that our team truly believes our tech is going to be game changing in the industry. We kept our team highly motivated and even grew the ranks in a period of high hiring difficulties. 

Amit: What’s your vision for Kaddra in the future?

Quentin: We want people to live a great customer experience every time they interact with one of our client’s online stores.

We want to improve the usage of push notifications globally with a much smarter and relevant ecosystem. Apple, especially, has made a huge effort in building a smarter platform for push notifications on their devices and we hope to become the engine of choice for retailers around the world. 

With it still being relatively new, over 90% of the market share is there for the taking, and our goal is to dominate this space in the next 2 years.

The Series a raise

7startup is delighted to be managing the Kaddra $5 million Series A round. 

Kaddra has the opportunity to secure market dominance, this round is pivotal in preparing ourselves for lift off. We are currently based in Singapore but are transitioning the business over to Europe as we make it our key operational base. 

The founder and CEO are moving to Europe to support the business on the ground, and 4 key positions have been already moved to the UK, including head of finance, head of Marketing, and Chief Commercial Officer. 

With our move to the West, we are set to make some key hires to scale the business and achieve our growth goals over the next 12 to 24 months. 

Kaddra’s plan is  to use this capital to make that transition to Europe and then go Global by:

  • Investing in building strong resellers (marketing agencies) and channel partners network to accelerate growth for high margins.
  • Target new territories and larger clients in Europe and begin targeting the US.
  • Making key hires – for example, CRO, ML experts, and data scientists.
  • Building more product integrations, ML/AI capabilities, and an SDK.

Interested investors can get in touch with Amit, Founder of 7startup to discuss an investment in Kaddra.

Amit Khanna is the founder of 7startup and has 19 years of experience with Startups and the Enterprise, holds an MBA, focusing on Growth and Investments. Amit supports Kaddra as an Advisor, Investor Relations.

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