Finnish e-commerce software firm Nosto Solutions said Tuesday that it has closed $5.5 million in funding. Wellington Partners led the round with participation from Open Ocean Capital, SanomaVentures and Tekes, the Finnish Funding Agency for Innovation.
Helsinki – 15 July 2014 – Nosto Solutions, the market leader in e-commerce personalization, has secured a $5.5 million round of financing led by Pan-European venture capital firm Wellington Partners with participation from existing investors Open Ocean Capital and SanomaVentures, along with Tekes, the Finnish Funding Agency for Innovation.
Nosto is the first company to launch a self-service marketing automation solution for the global e-commerce industry. Since launching in October 2013, Nosto has added over 1200 online retailers to its international client list and revenues have grown over 500%. Nosto has identified the increasing need for online stores to differentiate themselves within the expanding international e-commerce market; this new round of funding allows Nosto to continue its strategy of global expansion.
Founded in Helsinki in 2011, Nosto has developed a cloud-based big data SaaS solution (patent pending) that enables online retailers to deliver a personalized shopping experience to individual customers based on their unique user behavior. Through implementing a simple plug and play solution, Nosto offers retailers full personalization of their online store. Nosto’s marketing automation tools help any online merchant increase conversion, customer retention and online store revenues. Nosto’s bespoke features include e.g. on-site recommendations and personalized triggered emails.
“Our mission is to make online shopping more enjoyable by delivering customers personalized shopping experiences. After successfully releasing our self service solution last autumn, and seeing the huge interest, we continue fulfilling our mission by building new tools to help people connect with the products they want across their entire shopping journey.” says Juha Valvanne, CEO and Founder of Nosto. “To attract the backing of an organization like Wellington Partners is a strong validation of our business and our technology. This funding enables us to continue investing substantially in innovation, technology and people.”
Eric Archambeau, Wellington Partners’ Managing Partner commented:
“Wellington is dedicated to its strategy of investing early in very promising European digital media and software companies to assist them in rolling-out their product globally. We have extensive experience of investing in e-commerce analytics and marketing automation tools and are delighted to be supporting Nosto at this exciting time in the company’s growth. We see a huge opportunity for a new generation of such tools to help small and medium-sized online stores level the playing field in terms of performance against e-commerce giants such as Amazon and Rakuten. These big companies have developed a data-driven advantage over smaller web shops that could not afford the same level of R&D in data mining and predictive modeling. The combination of deep technology and simplicity offered by Nosto made us very excited about joining forces with Nosto’s founders and existing investors.”
Since its seed funding round in April 2013, launching its self service solution, and following the hire of Matti Rönkkö, former Global Venture Development Director at Rocket Internet to lead the global expansion, Nosto has tripled the size of its team with new recruits from Google, Amazon and other global e-commerce players.
About Wellington PartnersWellington Partners is among the most successful pan-European Venture Capital firms. With more than €800 million under management and offices in London, Munich, Zurich and Palo Alto, Wellington Partners invests in start-up companies throughout Europe that have the potential to become global leaders in the areas of digital media, resource efficiency and life sciences.
Since 1998, Wellington Partners has invested in more than 100 companies, including publicly listed firms like Xing, ACG, Actelion, Evolva, as well as privately held companies like Spotify, Hailo, Yplan, Alando (acquired by eBay), Qlayer (acquired by IBM), Meiosys (acquired by SUN), GLO and Cavendish Kinetics.
For further information, please visit www.wellington-partners.com.
Nosto is an e-commerce software company providing a SaaS solution that transforms online shops from one-size-fits-all offerings to relevant, personalized experiences, updated dynamically and in real-time. Nosto tracks visitor behavior in online stores enabling merchants to tailor shopping experiences with automatic product recommendations based on individual behavioral data.
Nosto is currently powering online retailers in over 30 countries from offices in Helsinki, Stockholm, London and Berlin and the company’s clientele includes international brands such as LUSH, Intersport, The Iconic, Flight Club, Bauhaus and Philips.
For further information, please visit www.nosto.com