Australian-founded tech company, Longtail UX, has announced a $2.25 million supplementary equity raise in partnership with Woolworths Group’s venture capital arm, W23 and Steven Lew owned group, Global Retail Brands (GRB).
This investment builds on the $3 million funding round led by Investec through its Investec Emerging Companies Fund I (IEC Fund I) in March this year.
The Investec raise originally allowed for a further $1 million of investment from up to two additional strategic investors within a three to four months. However, interest from both W23 and GRB was sufficiently strong that the Longtail UX board took the decision to increase the allocated cap to accommodate W23 and GRB’s investment.
Longtail UX patented technology is used by retailers including Kogan, Adore Beauty, GraysOnline and Dan Murphy’s, to acquire online customers at a predictable return on investment (ROI).
Longtail UX co-founder and co-CEO, Will Santow said the company is delighted to have support from W23 as a new partner and shareholder.
“The investment is double what we initially allocated. It comes at a time where COVID-19 has created such uncertainty and the belief they showed in our unique technology is an incredible endorsement that we have created something truly special and they feel they can help drive us towards the next stage of our journey,” he said.
The partnerships have already seen Global Retail Brands implement Longtail UX’s technologies with further brands to benefit over time. The W23 and Longtail UX partnership will explore how to expand the use of Longtail UX technologies across Woolworths Group brands.
W23 managing director, Ingrid Maes, said the investment in Longtail UX continues its focus on strategic partnerships with game-changing startups.
“At W23 we want to support innovation and foster entrepreneurial talent. The team at Longtail UX is high-calibre, and we know there is a lot to learn from innovators like them who are disrupting the market.
“Our partnership model will give the team at Longtail UX the freedom to continue doing what they do best, while offering them access to the assets we can bring to the table through the Woolworths Group to help them realise their plans faster. In return, our partnership should help the brands within Woolworths Group differentiate their offer and accelerate their ability to meet the changing needs of customers.”
The investment will further support Longtail UX’s international expansion and delivery of its full self-service platform, as well as enhancing the launch of Longtail UX’s new product – LUX Shopping – which measurably increases the ROI of e-commerce advertising.
Longtail UX co-founder and co-CEO Andreas Dzumla added, “We have built a game-changing product that is delivering huge results for our clients across multiple industries. This latest investment enables us to help more businesses than ever before expand their website capabilities, personalise customer experiences across major digital marketing channels and connect more new customers with their brand at a predictable ROI.”
Photo Caption: Longtail UX co-founders and co-CEOs Will Santow (left) and Andreas Dzumla (right) with W23 managing director, Ingrid Maes (centre). Credit: Dallas Kilponen.