Retail analytics SaaS platform Kepler Analytics has raised $22m (USD$15.5m) Series B funding round.
Sydney-based VC OneVentures led the raise through its 1V Growth Fund V, with participation from Whiteoak, Taronga Ventures, and Shearwater Capital. Existing investors Reinventure and InterValley Ventures once again chipped in.
The tech company plans to use the fresh capital for key hires, roll out new product features and fuel global expansion, as a result of significantly increased customer demand in North America, Europe and Asia.
Kepler measures shopper traffic and behaviour in the retail environment, using analytics software to provide actionable insights on stock arrangement to increase conversion.
Kepler CEO David Gordon said the Melbourne-based data startup has seen a surge in demand for in-store analytics, with its 3-year compound annual growth rising from 75% to more than 100% in the past year alone as shoppers returned to bricks-and-mortar shopping
“Retailers have realised a need to bring the kinds of data-driven insights they derive from their ecommerce operations into the store,” he said.
“Being able to capture the customer journey within a physical store was seen as an untapped opportunity to not only optimise retail layout and promotions, but also to enhance the customer experience and interaction with staff and merchandise.”
Gordon said that while most in-store analytics solutions are based on intrusive camera technology, Kepler’s proprietary radio energy density sensors gathers shopper traffic and behaviour data by measuring the motion of mobile devices through the retail environment. That means customers are not individually identifiable thereby meeting privacy regulations globally.
“Our mission is to support retail businesses that want to increase sales, reduce costs and create a better experience for their customers,” he said.
“Our easy-to-install technology enables retailers to do this by bringing the kinds of insights they expect from their ecommerce operations in-store. With the backing of OneVentures, we plan to establish our technology as the benchmark for in-store retail success.”
Kepler is currently services more than 5,500 stores across 24 countries from small local shops to large enterprise retailers including Aēsop, Hanes Group, Officeworks, Hudsons Bay and Pandora.
OneVentures Operating Partner Nigel Dews said the VC recognised the potential in Kepler to scale their operation and deliver against the growing demand for customer data.
“In the highly competitive world of retail, businesses need to be data obsessed, operationally focused and customer driven in order to stay ahead,” he said.
“Kepler presents the first truly scalable solution to provide the same level of insights as ecommerce for physical store operations, representing a unique opportunity to modernise the bricks-and-mortar shopping experience, which isn’t going away.”