PE Deals

Luminate-backed Axonify acquires venture-backed Nudge

Luminate Capital Partners made a growth investment in Axonify in April 2021.

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  • Nudge raised $9.5 million in financing in August 2019.
  • The financing round was led by Jump Capital with participation from existing investors BDC Capital, Brightspark, Generation Ventures and Standup Ventures
  • Axonify will look to address frontline turnover and labor shortage with the new acquisition

Luminate Capital Partners-backed Axonify has acquired Nudge. Axonify provides frontline employee training and communications and is headquartered in Waterloo, Ontario. It has more than 200 customers worldwide including Walmart, Levi’s, and Kroger.

Luminate, which is based in San Francisco, made a growth investment in Axonify in April 2021 of $250 million, giving the company a valuation of $350 million.

Axonify hopes to better address frontline turnover and labor shortage with the conclusion of this deal. Voluntary employee turnover has historically averaged at 25 percent but a recent study from Axonify found that nearly 50 percent of frontline workers are prepared to leave their current jobs citing burnout as the most common reason.

“Together with Nudge,” said Carol Leaman, CEO and co-founder of Axonify. “We will enable a digital workplace for frontline teams that is easy to access and inspires success while reducing staff turnover and prioritizing cross-skilling and communication,”

Toronto-based Nudge is a frontline enablement solution that provides workers with a mobile-first platform that combines guided task execution and two-way communications. Its software, used by brands like Margaritaville, Staples and Mastermind Toys,  allows employees to complete tasks, provide feedback, and test their knowledge while earning recognition and points.

Nudge raised $9.5 million in August 2019 in a round led by Jump Capital. Existing investors BDC Capital, Brightspark, Generation Ventures and Standup Ventures also participated.

“Together with Axonify,” Lindsey Goodchild, CEO and co-founder of Nudge said. “We can deliver one platform that does everything a frontline employee needs to thrive: engaging microlearning, two-way, real-time communication, task management, and much more.”