Customer recommendation marketing engine development firm Nosto has received $5.5 million in series A funding to help offer more merchants its suggestion marketing tools.
Nosto received initial seed funding back in April 2013 for the amount of $ 2.8 million from investors Open Ocean Capital, SanomaVentures and a number of undisclosed angel investors. The new round of funding was backed by VC firm Wellington Partners.
The Finnish startup’s product consists of a marketing tool, targeted at SMEs, which analyzes customer behavior to offer suggestions and recommendations, similar to marketing campaigns conducted by Ecommerce behemoths Amazon and eBay. Since its public launch in October 2013 Nostro has been providing customer recommendation tools to over 1,200 online merchants and retailers.
Six months ago Nostro launched a “self Service” variant and since has seen its revue grow by 500%.
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CEO and founder Juha Valvanne stated the new found funds will help with further development of Nosto’s signature product as well as help recruit more manpower for research & development, business development, marketing and management, as well as fueling future plans for developing new products.
“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,” Valvanne added.
It is companies like Nostro which help bring awareness to smaller online retailers. A large portion of return customers from larger Ecommerce platforms are persuaded by recommendations and suggestions sent through Marketing campaign . Amazon is touted as being the king of Ecommerce recommendations and recently announced its plans on shipping items to customers before even being ordered.