UK – Personalized e-commerce packaging start-up Penny Black has received an additional £1.5 million (US$1.87m) in seed funding from Agfa and Dutch venture capital firm Ninepointfive.
First launched in the UK and Europe in April 2022, Penny Black received an initial investment of £1.3 million (US$1.62m) from AGFA and ninepointfive in October 2022; the investment intends to help accelerate growth.
Numerous partnerships between Penny Black and customers such as toothbrush retailer SURI, gin brand Warner’s Distillery, and health supplements retailer Zooki triggered the two investment funds.
Retailers and third-party logistics centers (3PLs) have been attracted to the ‘easy-to-use’ marketing technology to help differentiate themselves from competitors.
Penny Black CEO, Douglas Franklin, said: “The moment consumers open their order will be an opportunity for brands to entice and retain consumers, helping them drive more revenue from existing customers.
“Our software seamlessly connects e-commerce stores, marketing tools, warehouse management systems and fulfilment centers, making sure brands can bring in customer data and create hyper-personalized experiences and printed material that delights customers the moment they open purchases.”
Penny Black’s marketing SaaS tool for e-commerce brands is already being deployed across Europe by global fulfillment providers like Radial, Elanders, I-Fulfilment and Schroeders.
Douglas continued: “3PL companies currently struggle to personalize e-commerce packages and can’t do much beyond mass-printed, one-design, gift notes thrown inside.
“Our unique offering helps automate a revenue-boosting process for on-demand, beautifully designed printouts, specifically geared towards each customer, location, product or package.”
Recent trials of Penny Black’s solution showed that retailers saw a measurable uplift in online sales after running personalization campaigns.
The toothbrush retailer, SURI, used Penny Black inserts to drive customer referrals and saw referral share rates up to 30 percent, driving more customers to discover the brand for the first time. Other brands managed to equate up to an additional £2.20 in revenue per insert sent.
Reflecting on the company’s swift ascent, Douglas added: “Brands need to surprise and delight customers to secure their loyalty, especially when acquiring new ones can be so expensive.
“Riding the wave of global growth in e-commerce, we’re delighted to be attracting more interest. And this latest boost in investment will help us develop even further.”
Penny Black has marketed itself on the idea that the packaging for an e-commerce product is the only space for marketing that offers a 100% open rate.
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