Advertising platform Zitcha has raised $4.7 million in Seed funding in a round led by local VC OIF Ventures.
The software platform lets retailers sell advertising space to suppliers to market directly to their customers. It automates marketing purchases by retail brands on retailer channels such as email, apps, digital in-store screens, websites and social media.
Retailers such as Adore Beauty and New Zealand’s The Warehouse Group are customers, with brands such as Microsoft, LEGO, Asahi, Samsung and Nestle signing onto Zitcha to market their products, speaking directly to potential buyers just ahead of purchase.
The startup has offices in Melbourne, Sydney and Noosa and is now looking at the US for the next step in its global ambitions.
Cofounder and CEO Troy Townsend said they’re currently in discussions with a number of top-tier retailers looking to use the platform to bolster revenue and marketing. A retailer can pocket 90% of the revenue generated by brands advertising on its platforms, with the brands self serving their own campaigns using the customer data within the retailers.
“Since Zitcha’s official launch in June, the interest from retailers in Australia and beyond has been incredible. We are rapidly scaling the business and taking it to North America, Asia and Europe,” he said.
“With OIF’s track record of partnering with founders and helping them launch in the US, they are the perfect investor for us.”
His co-founder Jack Byrne said: “This funding will enable us to grow the opportunity even further as we capitalise on our unique position to help retailers sell any marketing channel they want, in one place with their brand front and centre while maintaining full control over first party data.”
OIF Ventures investor Oliver Darwin said retail media is fundamentally shifting the digital advertising landscape, providing a high-margin revenue stream for retailers and increased ROI for advertisers.
“Troy and Jack have unique insight into the challenges faced in the retail media ecosystem and have built a best-in-class platform to solve them with Zitcha,” he said.
“We’re incredibly proud and excited to be partnering with the Zitcha team on this journey.”