Retail advertising startup Zitcha bags $15 million Series A for US push

Retail media adtech Zitcha has raised $15 million in a Series A as it looks to set up shop in the US.

The round was led by US fund VMG Partners with support from existing investor OIF Ventures, which backed 2022’s $4.7 million Seed raise.

It’s VMG Technology’s – the firm’s stage-agnostic venture arm – first investment in an Australian business.

Zitcha CEO Troy Townsend is relocating to the US to head up a new US office and hire sales and customer success teams.

“The US presents an enormous opportunity for Zitcha. Our platform is uniquely positioned to help retailers and brands fully leverage the third wave of digital advertising and as US retail media networks mature, the demand for integrated, data-driven ad solutions has never been higher,” Townsend said.

“With this investment from VMG Partners, along with their vast experience with consumer brands and retail technology, we are excited to tap into the immense prospects America offers.”

Earlier this year Zitcha struck a strategic partnership with US aggregated first-party shopper data and media platform Axonet to leverage first party convenience store data and retail media touchpoints across tens of thousands of North American convenience stores

The software platform lets retailers sell advertising space to suppliers to market directly to a retailer’s customers. It automates marketing purchases by retail brands on retailer channels such as email, apps, digital in-store screens, websites and social media and gives all more sophisticated, data-driven advertising solutions.

Retailers in seven countries use the platform, including Coles here, New Zealand’s The Warehouse Group, Canada’s Peavey Mart, British online retail giant Ocado and South Africa’s Leroy Merlin as well as brands such as Unilever, Fisher & Paykel, Microsoft and Lego.

Cofounder Jack Byrne, Zitcha’s chief operating officer, will manage operations outside of the US, with Australia as the engineering hub and HQ.

“The investment from VMG Partners and OIF Ventures allows Zitcha to scale our US presence and accelerate our entry into its red hot retail media ecosystem,” he said.

“But while the US is an obvious important growth opportunity, Australia, New Zealand and other key territories in Europe and Asia remain a priority. We are a proudly Aussie founded business and are committed to ensuring retailers and brands continue to receive the best of what we have to offer and the level of service they have come to expect.”

VMG Technology general partner, Carle Stenmark said Zitcha has show “impressive momentum” since launching just two years ago

“Troy and Jack have built a talented team of specialists and pursued a scalable program of global expansion,” he said.

“Their ambition and deep expertise in retail media made them an ideal match for us. We look forward to supporting the business and helping drive its US acceleration.”