SAN MATEO — Punchh, which offers digital marketing for retail brick & mortar stores, has picked up a new round of Series B venture funding. Punchh raised $20 million in funding led by Sapphire Ventures with participation from Cervin Ventures, bringing their total funding to date to $31 million. The new funding will be used to expand the Punchh Marketing Cloud to new industries and roll out predictive marketing capabilities using AI and machine learning.
Punchh says it serves over 100 restaurant chains and 35 million customers.
Punchh is also releasing a new product, Punchh Acquire, which converts anonymous customers into brand loyalists through a broad array of channels including Wifi, SMS, social platforms, Apple Pay, eClub and others. The new Punchh Acquire product, previously available only as a Private Beta, is now available to all Punchh customers and is currently being rolled out by several restaurant chains.
Punchh’s new AI and machine learning tools will empower brick and mortar retailers with the same data-driven, omni-channel marketing strategies that have allowed digital merchants to continually gain market share. By enhancing the Punchh marketing platform with intelligent and predictive consumer profiles, marketers at every level can create impactful, custom campaigns and offers across national, local, sku or even weather-based strata. Punchh is the only marketing solution in the world to combine this array of Omni-channel marketing opportunities with artificial intelligence-driven marketing.
“Companies like Amazon have digital, data-driven, and tailored 1-1 marketing down to a science, while brick and mortar retailers are left data-blind and forced to spray and pray – they don’t learn from your past purchases, can’t recommend products they know you’ll buy, and they aren’t able to send the right offers to you at just the right time,” said Shyam Rao, CEO and co-founder of Punchh. “Consumers that choose to do their shopping online as opposed to going to the store aren’t lazy – online retailers are simply doing a better job at knowing their customers and keeping them loyal with delightful and customized shopping experiences.”
Rao continued: “The tools to compete with Amazon do exist and, as Punchh customers like Pizza Hut and Coffee Bean and Tea Leaf can attest, brick and mortar retailers now have the tools to identify customers, predict behaviors and execute custom campaigns on the fly that fundamentally increase lifetime customer value.”
Punchh has restaurant marketing customers that include The Coffee Bean & Tea Leaf, El Pollo Loco, Pizza Hut, Quiznos, and Smashburger. In addition to the fundraising event and product launches, Punchh has announced the intention to broaden their focus beyond the realm of restaurants and into new vertical markets including Health & Beauty, Convenience Stores, and Gas Stations with more to follow. As part of the push into new markets Punchh is also announcing the launch of Fantastic Sams hair care along with TruFusion, a popular chain of Yoga, Pilates, Barre and Cycling health and fitness stores.