Conversific Raised Funding Amount of 2.3M USD
Can the winners of the pandemic be Startups focusing on eCommerce?
“Hungarian Startup”, which helps to increase the profit of online merchants, has received a capital investment of nearly 2.3 million USD.
November 4th, 2020. Debrecen – Conversific Ltd, a Startup from Debrecen, which is a competitor in the international eCommerce analytics market, carried out a capital increase of about 2.3 million USD. The unique solution currently focuses on providing analytics support to Shopify and Woocommerce merchants by providing both predictive and prescriptive insights based on patterns of customer behavior. It now supports more than 20,000 web stores in 180 countries with automated analytics, KPI Reports, and customized recommendations. Conversific also helps webshop owners with free eCommerce benchmark data that other services, such as Google Analytics, a world leader in the analytics market, do not provide.
Today, 90% of Conversific’s revenue comes from outside Hungary, including 60% of revenue coming from Anglo-Saxon countries – the US, England, Canada, Australia. The company intends to use the investment received from Hiventures, a member of the MFB Group, and Bonitás Ltd to further increase market share and to innovate.
In recent years, the turnover of online sales has been growing steadily both domestically and globally. Last year, webshops worldwide had an annual turnover over 4200 billion USD, which is 18% increase compared to 2019 according to Statista. There are more than 3.5 billion people shopping online, which puts user penetration at 46.6% in 2020 and is expected to hit 63.1% by 2025. The market’s largest segment is Fashion followed by electronics, media, hobby and toys.
As more and more of commerce moves into the online space, more and more businesses are emerging that are trying to put online stores into a highly profitable position – with analytics solutions or sales support software.
Conversific started in 2017 with the idea of providing a large number of micro and small businesses with state-of-the-art analytics and data-driven decision support. This concept was also noticed by Hiventures in 2018 when it first raised capital in the company, from which the company managed to increase its monthly recurring revenue (MRR) tenfold and the value of the company fourfold.
Conversific entered the international market three years ago, by presenting themselves on the app store of the world’s largest e-commerce platform, Shopify. A great breakthrough happened when they transitioned to the Freemium business model, making the basic service free of charge and users only pay for advanced features. This made it possible for Shopify and, WooCommerce webshop platform users to compare their performance with their industry competitors.
While most analytical tools primarily provide reports on business-related metrics and technical information, the Hungarian solution helps to turn this data into easy-to-interpret sales-driving information and actionable steps that can significantly increase their customers’ revenue.