Consumer intelligence startup Konnecto is putting $3.5 million of seed funding to work to provide brands with data and insights on their customers.
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Using machine learning, Konnecto’s “Reveal & Disrupt” platform applies data science at the SKU level to analyze the digital paths to purchase, then generates actionable recommendations.
“We help on three points: digital customer acquisition, marketing strategy and competitive intelligence before launching a product on the market,” Erez Nahom, CEO of Konnecto, told Crunchbase News. “The product impact can be measured in an increase in customers and a reduction of the marketing budget, while also increasing the ROI.”
The Tel Aviv-based company is backed by TPY Capital, which led the round, as well as Differential Ventures, Magna Capital Partners, SeedIL Ventures and Hike Ventures. Including this new round, Konnecto has raised $4 million in total venture-backed funding since the company was started in 2018, Nahom said.
The consumer analytics market is projected to grow from $10.5 billion this year to $24.2 billion by 2025, according to MarketsandMarkets Research.
Meanwhile, Konnecto is already working with a dozen Fortune 500 companies and plans to use the new funds to increase the size of its data science team, as well as expand into the fast-moving consumer goods and direct-to-consumer industries, Nahom added.
The company is active in the United States, United Kingdom, Germany, Italy and Spain with estimates of 80 percent growth in the next 12 months. Priority for growth will start in those regions, though Nahom aims to expand later into Brazil, Mexico, Japan and other Southeast Asian countries.
“It’s been exciting to watch Konnecto take off,” said Guy Yamen, general partner at TPY Capital, in a written statement. “Synthesizing unexplored consumer data sets and turning them into actionable business insights is needed more now–in the post-COVID world–than ever before, given the increased volume of online activity, as well as the drastic changes in consumers’ preferences and needs. We are excited to take part in this journey.”
This article originally appeared in CrunchBase.
