Offermatic Announces $4.5 Million Investment Led By Kleiner Perkins Caufield & Byers Ron Conway, Omar Hamoui and Other Prominent Silicon Valley Investors Also Participate in Round
MOUNTAIN VIEW, Calif., March 9, 2011 /PRNewswire/ -- Offermatic (www.offermatic.com), the free online service that automatically saves people money on everyday purchases, has secured $4.5 million in a Series A investment led by Kleiner Perkins Caufield & Byers. A group of leading Silicon Valley investors including SV Angel Investor Ron Conway, former AdMob CEO Omar Hamoui, and early executives from Facebook and Mint.com, participated in the round of funding. Hamoui, a seasoned entrepreneur and company builder, also joins Offermatic's board of directors. This new round of funding will be used to build Offermatic's team and expand its services for consumers and retailers.
"We're very excited about the early momentum around Offermatic. This funding and participation will help grow our team and services into the most efficient way for people to save money, and for retailers to acquire and retain customers," said Faisal Qureshi, Offermatic founder and CEO. "People want to save money, and retailers want to reach new and existing customers with better precision. Now, consumers will receive true hyper-targeted offers to this market, creating a win-win for consumers and retailers alike."
Launched in beta in December, 2010, Offermatic automatically delivers high-value and personalized savings to consumers based on their spending history. By linking existing credit and debit cards to an Offermatic account, people receive automatic discount offers on products and services, without the hassle of redeeming coupons or vouchers. Offermatic's automatic rebates are activated with just one click and then applied directly to the shopper's bank or credit account after the relevant purchase is made. Simple.
The average redemption rate for online coupons is only half a percent, so marketers need a more efficient way to reach new customers. Offermatic lets retailers reach people who have opted-in to receive relevant offers based on purchase history. They can now send offers only to people who are already buying what they sell - but from somewhere else – to acquire the right customers at the right time. Combined with the one-click automatic rebates, the conversion rate among beta users has been 15 percent or more; 15-30 times higher than the average for online coupons.
"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. "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."
Founded in 2010, Offermatic is a free online service that automatically saves people money on everyday purchases. Based on personal spending history, Offermatic delivers consumers high-value, tailored savings without the hassle of coupons or vouchers. The company's precise targeting capabilities enable retailers to target the right people at the right time. Offermatic is founded by seasoned entrepreneurs with deep roots in online marketing and financial services aggregation and has received its Series A funding by leading Silicon Valley investors including Kleiner Perkins Caufield & Byers, Ron Conway and Omar Hamoui.
About Kleiner Perkins Caufield & Byers
Since its founding in 1972, Kleiner Perkins Caufield & Byers has backed entrepreneurs in over 500 ventures, including AOL, Amazon, Citrix, Compaq, Electronic Arts, Genentech, Google, Intuit, Juniper Networks, Netscape, Sun, Symantec, Verisign and Zynga. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm's portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions.