Amperity is announcing that it has raised $50 million in Series C funding.
The company offers what co-founder and CEO Kabir Shahani said is the ability to “ingest every piece of atomic-level data remotely related to a customer and assemble it into a customer 360.”
To illustrate how Amperity can help businesses use their customer data more intelligently, Shahani (pictured above with his co-founder and CTO Derek Slager) said a company with a branded credit card could start sending targeted offers based on customer activity, while a retailer could start sending promotions targeted at online-only customers to bring them into physical stores.
And just to be clear: This is only using first-party data collected by the brand itself, not third-party data purchased from other companies. In fact, when I brought this up, Shahani told me he has a “very strong and convicted belief in the sanctity of the relationship between the consumer and brands.”
Amperity says that in 2018, its annual recurring revenue grew 355% year-over-year. Although the startup only launched in 2016, it’s already signed up an impressive roster of customers like Starbucks, Gap Inc., TGI Fridays and Planet Fitness.
Shahani said that when they sign up with Amperity, most of these businesses are already trying to use customer data to improve their messaging, but they aren’t able to do so in “a real-time, in-the-moment, frequent way,” and they aren’t effectively merging data from different channels into a single profile.
He also argued that while Salesforce and Adobe have announced plans to move into this market, it was “kind of an intention announcement”: “There aren’t any real customers behind it, there aren’t any real use cases deployed.”
As the large marketing clouds build up their offerings, Shahani suggested that Amperity will still have the advantage of a “network effect,” with businesses recommending the company’s platform to each other, and will also benefit from an interest in standalone, “best-in-class” products.
“The marketing cloud phenomenon of 10 years ago, 15 years ago has certainly burned a lot of companies,” Shahani said.
Amperity has now raised a total of $87 million. The new funding comes from Tiger Global Management, Goldman Sachs, Declaration Partners, Madera Technology Partners, Madrona Venture Group and investor Lee Fixel (who previously backed Amperity through his role at Tiger).
“It’s been exciting to watch this team execute against their vision and develop the deep technical capability required to become the clear category leader,” Fixel said in a statement.
Among other things, the money should help Amperity beef up its sales and marketing — Shahani said it didn’t start seriously hiring a sales team until a year ago, and it didn’t hire its first chief marketing officer until three months ago.