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Offermatic, a service that uses your own personal spending habits to deliver customized savings and offers, announced Wednesday that it has raised $4.5 million in Series A funding from Kleiner Perkins Caufield & Byers, with participation from SV Angel Investor Ron Conway, former AdMob CEO Omar Hamoui, and early executives from Facebook and Mint.com. The new funds will be used to build out the team and expand the company's services.
Launched in December 2010, the service is like a Mint.com for coupons and rewards. By creating an account and uploading their debit and credit card information, users can get offers designed specifically for their shopping tastes based on their current spending habits. I signed up and it painted a pretty sad, suburban, working-class picture of me. All of my offers are for grocery stores, Target, and Walmart. Wow...this is who I am... Of course I'm still going to use them, which is as easy as clicking a button and getting the money sent right back into my account after I make a purchase. Nice.
But the service is probably even more alluring to brands and retailers, who shell out big bucks to find the most relevant channels for snagging consumers' attention. The service is essentially an opt-in advertising channel, allowing brands and retailers to deliver coupons and rewards to customers who are already receptive to them. The company notes that the average (non-Offermatic) online coupon has a redeption rate of less than 1%, but the redemption rate of Offermatic coupons is 15-30 times higher.
“Offermatic delivers an easy, elegant solution that consumers appreciate and closes the loop for marketers with no integration required,” said Aileen Lee, partner at Kleiner Perkins Caufield & Byers, in a prepared statement. “We believe the strength of the team, the depth of their technical solution and Offermatic’s strong results to date are indicators of great future success.”
In addition to the funding, Offermatic also announced the addition of Omar Hamoui to the company's board of directors.
Image source: Offermatic.com
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