Personalised e-commerce packaging start-up Penny Black has received an additional £1.5m in seed funding from Agfa and Dutch venture capital firm Ninepointfive.
Penny Black’s platform integrates with retailers’ e-commerce platforms to provide them with personalised packaging for each customer.
The company has marketed itself on the idea that the packaging for an e-commerce product is the only space for marketing that offers a 100% open rate.
The London-based tech startup first launched in the UK and Europe in April 2022. Agfa and Ninepointfive supported Penny Black with an initial investment of £1.3m in October 2022 and the business said this latest £1.5m investment will help to accelerate its growth.
Penny Black has shown steady month-on-month growth and has attracted a number of new customers. These include sustainable toothbrush retailer SURI, gin brand Warner’s Distillery, and health supplements retailer Zooki.
SURI used Penny Black inserts to drive customer referrals and saw referral share rates up to 30%, driving more customers to discover the brand for the first time. Other brands have reportedly managed to equate up to an additional £2.20 in revenue per insert sent.
Penny Black said retailers and third-party logistics (3PL) centres have also been attracted to the company’s marketing technology, to help differentiate themselves from competitors.
“The moment consumers open their order will be an opportunity for brands to entice and retain consumers, helping them drive more revenue from existing customers,” said Penny Black CEO Douglas Franklin.
“Our software seamlessly connects e-commerce stores, marketing tools, warehouse management systems and fulfilment centres, making sure brands can bring in customer data and create hyper-personalised experiences and printed material that delights customers the moment they open purchases.”
The company’s SaaS tool for e-commerce brands has been deployed across Europe by global fulfilment providers including Radial, Elanders, I-Fulfilment, and Schroeders.
“3PL companies currently struggle to personalise e-commerce packages and can’t do much beyond mass-printed, one-design, gift notes thrown inside,” said Franklin.
“Our unique offering helps automate a revenue-boosting process for on-demand, beautifully-designed printouts, specifically geared towards each customer, location, product or package.”
He added: “The moment consumers receive their online orders is the only touchpoint left for e-commerce brands to have a physical connection with them. Brands need to surprise and delight customers to secure their loyalty, especially when acquiring new ones can be so expensive.
“Riding the wave of global growth in e-commerce, we’re delighted to be attracting more interest. And this latest boost in investment will help us develop even further.”
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