Atlanta-based Cardlytics has raised $33 million from Groupe Aeroplan and existing investors to expand its transaction-driven marketing technology and banking rewards business in the U.S. and abroad. The company has raised financing previously from investors Kinetic Ventures, ITC Holding Company, Canaan Partners, Polaris Venture Partners and Total Technology Ventures.
Cardlytics, the pioneer of transaction-driven marketing™, announced today that it has signed a long-term global strategic alliance with Groupe Aeroplan, a global leader in loyalty management. As part of the alliance, Groupe Aeroplan and existing investors are injecting an additional $33 million in capital to fund U.S. and International growth.
“Transaction-driven marketingTM is an incredibly powerful channel for retailers of all sizes. Cardlytics drives store volume more effectively than any untargeted daily deals provider. It pioneered the convenience of offers linked to the payment card. However, beyond this, transaction-driven marketingTM provides an unmatched level of targeting and measurability,” said David Perdue, Cardlytics Board Member and former Chairman and CEO Dollar General and Reebok Brand. “Marketers know they are reaching the right customers with the right message and can precisely measure the results during a campaign and over-time so they have absolute confidence in the ROI. I would love to have had this level of marketing precision when I was with Dollar General and Reebok.”
Cardlytics is the leader in transaction-driven marketingTM. Through the Cardlytics platform, retailers nationwide are presenting consumers with relevant offers via trusted electronic banking channels including mobile, SMS, email and on-line banking. Cardlytics will reach 70% of all U.S. households in Q1 2012.
“Given how the Cardlytics solution so fundamentally changes how marketers can invest to grow their business with confidence, it is going to become a global solution,” said Scott Grimes, Cardlytics’ CEO. “Groupe Aeroplan is an organization that deeply appreciates the needs of sophisticated marketers throughout the world and accelerates our ability to serve retailers and financial institutions globally.”
Cardlytics’ solution is groundbreaking in the world of marketing. By deploying technology within partner financial institutions, Cardlytics can leverage all of a household’s purchases to target and measure marketing in a way that full protects consumer privacy and financial institution data. All of this is done in a ‘pay for performance’ model thereby eliminating all risk for the merchant.
Groupe Aeroplan owns Aeroplan, Canada’s premier coalition loyalty program; Carlson Marketing, an international loyalty marketing services, engagement and events provider; and Nectar, the United Kingdom’s leading coalition loyalty program. Additionally, it operates LMG Insight & Communication, an international customer-driven insight and data analytics business; holds majority equity positions in Air Miles Middle East and Nectar Italia; and a minority position in Club Premier, Mexico’s leading coalition loyalty program. As such, its investment positions Cardlytics to capitalize on its U.S. dominance and greatly accelerate its level of growth internationally.
“We heard first-hand from Cardlytics’ bank and merchant partners about the impact that Cardlytics’ transaction-driven marketingTM is making,” said Rupert Duchesne, President and Chief Executive Officer at Groupe Aeroplan. “Banks and their customers are benefitting from great rewards programs but the biggest impact is on the merchants, who are able to leverage market insights, targeting and measurement that is ground-breaking. We are very excited to take this global.”
This latest round of funding marks the fourth successful funding event for Cardlytics as it continues its phenomenal growth providing rewards program for financial institutions. Current investors including Canaan Partners, Polaris Venture Partners, TTV Capital, ITC Holdings and Kinetic Ventures are all participating in this round of funding. Morgan Keegan Technology Group advised Cardlytics on this financing. The company is consistently recognized by the industry, most recently as a Red Herring Global 100 Winner, a Top Ten Financial Service Best Practice by Forrester and a Judge’s Choice Award winner for 2011 by PayBefore.
“Our company’s history has been defined by consistent growth and industry acceptance, which validates our belief that transaction-driven marketingTM represents the evolution of direct marketing to consumers,” said Lynne Laube, President and COO of Cardlytics. “As we look beyond our own country to business opportunities abroad, Groupe Aeroplan is an ideal partner to help us realize that vision.”
About Groupe Aeroplan
Groupe Aeroplan Inc., a global leader in loyalty management, owns Aeroplan, Canada’s premier coalition loyalty program, Carlson Marketing, an international loyalty marketing services, engagement and events provider , as well as Nectar, the United Kingdom’s largest coalition loyalty program. Groupe Aeroplan also operates LMG Insight & Communication, an international customer-driven insight and data analytics business. In addition, Groupe Aeroplan has majority equity positions in Air Miles Middle East and Nectar Italia as well as a minority position in Club Premier, Mexico’s leading coalition loyalty program. For more information about Groupe Aeroplan, please visit groupeaeroplan.com.
Cardlytics is the pioneer and leader of the cutting edge field of transaction-driven marketingTM, expected to grow into a multi-billion industry in the US over the next four years, according to the Aite Group. The company’s unique advertising platform enables banks to deliver rich, relevant rewards to its customers based on purchasing history while fully protecting their privacy. The platform is entirely merchant-funded with advertisers targeting consumers based on spending patterns: where, how much and how frequently they spend at a store and in the broader retail category. Since its founding in 2008, Cardlytics has been a leader of innovation with recent accolades including being named one of the 100 most innovative private companies in the world by Red Herring as well as the “#1 Best Practice” in digital finance by Forrester Research.