San Francisco-based Leanplum, a mobile marketing platform provider, closed $29 million in Series C funding today. It boosts total funding for the 4-year-old company to $46.3 million.
Canaan Partners led the round with participation from existing investors Kleiner, Perkins, Caufield & Byers (KPCB) and Shasta Ventures.
"We’re creating the second-generation marketing cloud, built for a mobile-first world," Momchil Kyurkchiev, Leanplum CEO and co-founder, told CMSWire. "Traditional marketing clouds are natively built for the desktop web, and often rely on cumbersome integrations with acquired tools that don’t work smoothly together."
Sales, Marketing, Engineering Expansion
Leanplum officials plan to use the new funding to expand sales, marketing and engineering teams and drive global expansion. The company also announced Joydeep Bhattacharyya, formerly of Shasta Ventures and now with Canaan Partners, will return to the Leanplum board of directors.
Leanplum specializes in mobile marketing automation. It combines personalized messaging, A/B testing and analytics.
Leanplum’s email is integrated into its full mobile suite, which allows marketers to:
- Personalize with mobile intelligence. Segment and target emails based on location, engagement time, in-app behavior, purchase history, etc.
- Orchestrate messaging across channels. Use email in coordination with push notifications, in-app messages and app inbox
- Optimize for KPIs. Move beyond A/B testing
Money for Mobile, Leanplum
Foundation Capital, a venture capital firm that invests in MarTech firms, predicts investment into mobile marketing and advertising will grow by 10 times by 2025 — yielding a market value of approximately $600 billion.
Leanplum has been growing, too. The company said it has tripled its revenue each year for the past two years and expects to triple its revenue again in 2016. It counts Lyft, Macy’s and Tinder among its customers.
"There's a lot of inertia with marketers having to build solutions internally or buy standalone solutions from multiple vendors," Kyurkchiev told CMSWire. "Customers continually share pain points with us such as high costs, cumbersome vendor management, data silos and poor end-to-end customer experience. We’re seeing a lot of traction with savvy organizations looking to consolidate their mobile app marketing technologies into a single solution for customer engagement and growth."
Leanplum beats the large marketing clouds, he said, because it combines every marketing channel: apps, web, email, push notifications, SMS and more. "With Leanplum," he added, "you can easily orchestrate campaigns across all these channels, from one platform, using the personalization that only mobile provides. With this in mind, we’re building enterprise software that is easier to use, elegantly designed, and fully integrated."
Legacy marketing clouds are "not keeping pace" with a world transitioned to mobile.
"If you were to build a marketing cloud today, it would look a lot like Leanplum, a platform designed for mobile from the ground up," Kyurkchiev said. "The last generation of clouds created several billion dollar companies and Leanplum is poised to build the next billion-dollar marketing cloud for the mobile generation."
Leanplum's last funding announcement came in 2015. It releases quarterly data science reports to keep apps informed of the latest trends and best strategies to drive app engagement and ROI, Kyurchiev said. Leanplum officials said they tracking user actions on one billion devices and manage more than four billion mobile events per day.
Title image by Mike Wilson