Minneapolis-Based Rebuy Raises $4 Million Seed Round
You may not have heard of Rebuy, but if you’ve ever received a Shopify product recommendation based on your clicks, then you’ve likely encountered this fast-growing software business. The Minneapolis-based e-commerce personalization platform this week announced the completion of a $4.4 million seed round with plans to capitalize on rapid growth in online shopping.
Self-funded since its 2017 inception, Rebuy was co-founded by John Erck, a software expert who started his career at Cargill. The company currently employs 18 throughout the country. Its AI software is used by more than 2,700 Shopify merchants as well as many direct-to-consumer brands including Primal Kitchen, Fanjoy, and Something Navy.
The growth capital comes from Petersen Ventures, a Utah/Bay Area-based seed-stage venture fund with a consumer and enterprise software focus, and Sidekick Partners, a venture firm with an extensive portfolio of high-growth consumer and technology startups including Ring, Everlywell and Halo Top.
“Ecommerce brands are looking for the best tools to scale their revenue and automate their processes,” Taylor Jones, principal with Peterson Ventures, said in a statement. “By offering merchants the ability to easily offer personalized shopping experiences and intelligent product recommendations, Rebuy has built a product that delights consumers and drives high value for ecommerce merchants…Rebuy is quickly establishing itself as the leader in this emerging ecommerce enablement category.”
Rebuy tripled its annual recurring revenue and more than doubled its customer base in the past 12 months, according to a company release. With capabilities including product recommendations, personalized merchandising, and automated buy-it-again and upsell programs (think of those popups that say “bundle and save!”), Rebuy says it has analyzed over $6 billion in merchant transactions.
A Rebuy spokesman said the new capital will be used to grow the startup’s engineering and sales teams.
“We are thrilled to earn the backing of Peterson Ventures and Sidekick Partners,” Erck said in a statement. “Their support will help us continue to empower merchants of all sizes to accelerate growth with onsite personalization.”