Red e App snags $750K for enterprise messaging app

Faith Merino · March 21, 2013 · Short URL:

The mobile messaging app allows businesses to communicate with non-desk employees

Every once in a while, I’m slapped in the face by my own complacency. Like when I tell my husband to text me his social security number for our taxes. And he’s like, “you’re doing to delete it right after I send it, right?” And I’m all, “pfft. Duh.” Even though I totally wasn’t going to. So yeah, there are certain things that you shouldn’t do via text.

For business owners and those in the healthcare industry, security in the BYOD era is critical, which is why startups like Fixmo and Red e App are offering secure mobile solutions to meet that need. Red e App announced Thursday that it has raised $750,000 in a Series A round led by Yearling Fund II, an investment fund that focuses on up-and-coming Kentucky-based startups. Other, unnamed investors also participated in the oversubscribed round.

The Louisville-based company offers a secure mobile messaging platform for enterprises with thousands of non-desk employees in the field, such as enterprises in healthcare, retail, and the restaurant and manufacturing sectors.

In addition to security (which include a private key code for access and encryption), features include user list management for scheduling future messages and target lists, mobile notifications that allow users to delegate notification ability to specific employees, and real-time analytics and custom reports.

Some 400 restaurants and 40,000 employees are currently using Red e App, including chain restaurant Texas Roadhouse.

CEO Jonathan Erwin tells me that aside from security, the app allows for large-scale corporate communication with employees. Businesses with non-desk, hourly, remote, or mobile workers need to be able to get their employees’ attention outside of “an ignored or nonexistent email in-box, or busy text inbox channel reserved for close family and friends.” He adds: “texting simply doesn’t scale to thousands of employees.”

The app is free to download for employees while businesses pay a monthly fee per employee, as well as a network activation and setup fee.

“By giving companies a secure method to push out internal communications and enable employee collaboration, we offer an entirely new way to connect and engage,” said Erwin.

The company plans to use the new funds from this round to boost product development, expand sales and marketing initiatives, cultivate analyst relationships, and reinforce customer support. 


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