Convertedan Egyptian startup that operates a marketing operating system for e-commerce brands; has raised $3 million in a seed round led by Saudi-headquartered Merak Capital .
Other participating investors include 500 Global and MSAS. The company, in a statement, said it plans to use the funds for strategic recruiting and further development of its platform.
As brands move to e-commerce sales, they operate with vast amounts of fragmented data that needs to be unified to drive informed decisions and growth. As a result, platforms like Conversionin become essential as it caters to brands and businesses with one, some, or all of the following goals: driving personalized and scalable campaigns , convert customers, achieve measurable results, and increase revenue.
CEO Mohamed Fergany founded a company with Mohamed Atef and Mustafa Raslan in 2019 after working with several brands in companies like Speakol Ads and Vodafone. His time as a staff member has opened the door to helping offline stores retarget and retain customers online while finding new people to shop at their stores offline.
“If you work at IKEA and they take your phone number down. Our tool then works to find a similar product you can buy and we retarget you online. If you go back to IKEA for that product, we can calculate the cost of switching online,” the executive said in the interview. “This is the main idea at this point because we see a big problem with not having an analytics platform for the offline store or a retargeting mechanism.”
As the pandemic broke out and offline stores were forced to close, many of these brands turned to e-commerce, and as a result Conversionin brought its business online as well.
Fergany argues that while online brands use CRM software to collect data, they don’t use most of it. So Conversionin offers a solution so that they can make the best use of their data. It combines with more than 10 major e-commerce platforms and ad networks – and brands, once connected, can drive customers into different segments such as high and low value and categories. like people searching for specific products and use these insights to create multichannel marketing personalizations and drive various campaigns across social media, SMS, email, search search and other channels and have the ability to track and attribute revenue conversions.
Convertin says SMB e-commerce marketers using its platform will double return on ad spend (ROAS) and reduce customer acquisition costs (CAC) by 40%. To date, the company partners with media and advertising buying agencies and works with more than 100 local and multinational brands across Africa, the Middle East and South America across industries. automotive, healthcare and technology. Mr. Fergany said Convertin’s revenue from these businesses has been growing at a “double-digit” monthly rate.
The three-year-old Egypt-headquartered company also has offices in Saudi Arabia and Brazil; it just opened one of the following. The South American market is huge, with e-commerce revenue reaching $160 billion by 2025 from over 200 million users. As a result, Convertin plans to offer its services in Portuguese – in addition to English and Arabic – to brands in Brazil and also in Mexico, another South American market. Fergany also said Convertin is also eyeing South Africa and India.
“We focus on emerging markets, and if you look at it from a healthy unit economy, we can sell easily in those countries because there are low level of competition,” the CEO said of expansion into five new markets, including Saudi Arabia. “And the cost of acquiring customers is low compared to the US or European markets.” The new investment will help Convertin scale this beyond R&D and recruitment.
In a statement, Ahmed Aljibreen, partner at top investor Merak Capital, in charge of his firm’s investment, said the ever-changing landscape of digital marketing platforms creates an extra layer of challenges. A new way for e-commerce companies – and Conversionin has solved it. Hence the reason why Merak Capital is backing the company. “We are excited to endorse Convertin, a martech company that has built a state-of-the-art platform to simplify digital marketing, improve customer acquisition, and drive customer growth. mine. Conversionin is led by a world-class team in which we have great confidence as the company embarks on the next phase of growth in MENA and Latin America. “