The London based startup, Zephr, owned by media giant Bertelsmann, has raised $8M in funding, led by Bertelsmann Digital Media Investments. The funding also includes financing from Silicon Valley Bank UK Branch,which brings Zephr’s total funding to $11 million. Previously, Knight Capital and Nauta Capital have also invested in the company. As per the new funding announcement, the raised funds would be used in product development and expansion across the United States, Europe, and Asia.
Zephr helps media and digital businesses create high-conversion user journeys, rapidly build stronger customer relationships, dramatically boost ad yields and affiliate revenues. It already is providing services for publishers like McClatchy, News Corp Australia, Dennis Publishing, and PEI Media.
According to CEO James Henderson, Zephr is creating a monolithic product that tries to do a bit of everything. It is focused entirely on the experience and journey for the prospect or customer, driving an average 150% increase in conversion rates and a 25% increase in subscription revenue within the first six months.By offering the right product, package, or message at the right time to the right person, Zephr improves conversion rates, drastically decreases churn,and drives new, stable revenue.
“The recent weakness in the advertising market increased pressure for media companies to diversify revenue streams and aim to introduce or optimize subscription models. We recognize Zephr’s excellent technology that empowers publishers to galvanize the online subscription opportunity and create truly unique customer journeys,” said BDMI Managing Director UrsCete in a statement.