Axel Springer and kaufDA founders will fund mobile shopping platform Retale with additional $12 million
CHICAGO/BERLIN (May 04, 2015) – Retale (www.retale.com), a location-based mobile platform connecting more than 3.5 million shoppers with their favorite major retailers locally and based on the German kaufDA business model (www.kaufda.de), today announced it has secured $12 million in funding from its existing investor base among which Axel Springer SE, the leading digital publisher in Europe, holds the largest stake. The funding for Retale is part of an overall $18 million shareholder investment in Bonial.com Group (www.bonial.com), Retale’s parent company and an international leader in web and mobile advertising solutions for retail. Axel Springer’s investment is part of its already announced plan, made in March 2015, to further invest in the international expansion of Bonial.com Group, most notably in the U.S.
“In the U.S., retail circulars are a staple of the print media industry,” said Christian Gaiser, Chief Executive Officer and founder of Bonial.com Group. “However, as mobile adoption continues to flourish, consumers are increasingly migrating to digital channels for in-store deals and discounts. Retale is at the forefront of this evolution, enabling retailers to navigate new digital terrain, and we feel strongly about the potential for future growth.”
“Axel Springer’s investment in Retale underlines the extraordinary growth potential of the category, as well as our unique ability to facilitate it through our own platform,” said Pat Dermody, President of Retale. “Circulars are increasingly consumed digitally and the support will enable our business to scale as needed to accommodate the demand we are seeing from consumers and retailers alike.”
Retale replicates the print circular experience in a digital format, providing shoppers with access to in- store deals and promotions through the Retale website and mobile app. All information is location- based, making it possible for shoppers to find the right deal at a store nearby. For retailers, Retale provides new opportunities to reach circular readers who are migrating from print-to-digital, as well as a new generation of shoppers who are more likely to shop in-store while using smartphones or tablets to support them.
As the demand for digital circulars and mobile adoption continue to grow in tandem, Retale has experienced impressive growth since its October 2013 launch, with more than 3.5 million users in just over a year. To meet the demand for circulars through its platform, Retale has grown its retail partners by more than 664 percent, representing over 130 of the country’s largest retailers, including JCPenney,
Kohl’s, Target and Toy“R“Us. In a recent study, nearly 75 percent of smartphone users claimed to have viewed a retail circular in the past 30 days, with 50 percent of those doing so on a mobile device. The findings confirm a strong and rapid digital migration path for the traditionally print-based retail cornerstone.
See also TechCrunch: Axel Springer and kaufDA founders will fund mobile shopping platform Retale with additional $12 million – Investment is part of a $18 million fundraise for Retale’s parent company, Bonial.com Group…