Loyalty marketing startup Thirdshelf nets $800k in seed funding

Thirdshelf, a Montréal-based loyalty marketing software provider, has received $800,000 in seed-stage financing. The investors included Canadian venture capital firm iNovia Capital, Interaction Ventures and Otimo Ventures. Several angel investors also participated. Founded in 2014, Thirdshelf has created a cloud-based platform that allows independent retailers to deploy data-driven customer loyalty programs. The company said it would use funds raised to add retailers to the platform, continue developing its technology, and forge more partnerships.

Photo (left to right): Thirdshelf Co-founders Steve Valiquette, Rami Karam and Antoine Azar.

PRESS RELEASE

Thirdshelf raises 800K from retail tech pioneers

Loyalty marketing designed to build high value, high margin relationships for independent retailers.

April 19, 2016

Montreal-based loyalty marketing startup Thirdshelf today announced partnerships with world-class retail technology pioneers and investors including Otimo Ventures (led by Howard Stotland, former founder of STS Systems and David Henning, former GM of Epicor Retail), iNovia Capital, and Interaction Ventures.

Karim Salabi, former EVP of Rona and Co-founder of Ascendis Commerce, and angel investors Marc Petit and Dominic Bécotte also joined the round.

“Thirdshelf makes it easy and affordable for small and mid-size retailers to run a world-class loyalty marketing program”, says Howard Stotland. “This is a massive market and we are excited to help fuel Thirdshelf’s growth.”

“Retailers with data and insights on their shoppers can develop better loyalty programs, improve their shopping experience and as a result increase sales.”, says David Nault, principal at iNovia Capital. “Thirdshelf has a proven easy-to-use technology and methodology to do so and we are proud to be a financial partner.”

A Marketing Bot That Runs Retail Stores
Thirdshelf’s technology uses machine learning, data analytics and marketing automation to generate and automatically run effective loyalty programs optimized for each retailer’s business.

“We offer retailers a sophisticated marketing bot that analyzes in-store and online activity 24/7 in real-time, and knows how to engage customers at the right time with the right message to bring them back in-store and increase the average basket size.”, says Rami Karam, CEO of Thirdshelf. “Our online dashboards show the return on investment in real-time, so retailers can see just how much money Thirdshelf is putting in their pockets every day.”

By leveraging Thirdshelf, California-based retailer Body Energy Club created customized customer programs that boast open rates of 85%, significantly higher than the marketing industry average open rate of approximately 18%.

“Within the first few months, Body Energy Club USA built a database of over 6,500 customers and hit $3,000 a day in sales, which is nearly double the daily sales we achieved when we opened our first Canadian locations”, says Dominick Tousignant, owner of Body Energy Club. Tousignant expects to hit $5,000 a day in sales within 12 months.

Thirdshelf’s automated campaigns, reporting in-store purchases.

Partnerships With Industry Leaders
Thirdshelf integrates tightly with leading point-of-sale and ecommerce solutions, such as Lightspeed.

“Lightspeed is all about empowering independent retailers with the best tools to run their stores.”, says Jean-Paul Chauvet, CRO of Lightspeed. “We were blown away by what Thirdshelf offers in a SaaS platform, and how nicely it integrates with Lightspeed. Our customers are very excited to launch their own loyalty program with only a few clicks.”

Thirdshelf will use this financing round to add thousands of retailers on its platform, continue developing its machine learning technology and forge further partnerships in the retail industry.

About Thirdshelf
Thirdshelf is a cloud-based loyalty marketing platform for independent retailers. Through machine learning, it allows merchants to easily deploy highly effective data-driven loyalty programs designed to automatically bring customers back in-store and increase transaction size.

Merchants can signup to get a demo at www.thirdshelf.com/signup

About Otimo Ventures
Otimo Retail, an investment vehicle backed by Howard Stotland, Matthew Stotland, and David Henning provides capital, strategic and operational guidance to small and mid-sized technology providers who develop, market and sell software solutions to retail organizations.

Visit otimoretail.com for more information.

About Interaction Ventures
Interaction Ventures is a Montreal-based entrepreneur-led angel fund investing in the future of commerce. Investments span multiple areas in this space: marketplaces, platforms & API-driven businesses, e-commerce infrastructure products, data analytics and international e-commerce. Learn more at interaction.vc

About iNovia Capital
iNovia is an early stage venture capital firm that partners with visionary entrepreneurs to build the next generation of digital platforms and services. We leverage our distributed team and network of experienced founders, company builders and engineers to foster the growth of category-defining businesses. Headquartered in Canada, iNovia manages $450M and invests across North America. For more information, visit www.inovia.vc.

Photo courtesy of Thirdshelf