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Punchh raises $20M to enter retail markets, partners with Gusto

April 17, 2018

Punchh, a digital marketing company specializing in the restaurant industry, has raised $20 million in funding to break into vertical markets outside the industry and to roll out predictive marketing capabilities using AI and machine learning, according to a company press release. The funding, led by Sapphire Ventures with participation from Cervin Ventures, brings the company's funding to date to $31 million. 

Punchh is also releasing Punchh Acquire, which converts anonymous customers into brand loyalists through a broad array of channels including Wifi, SMS, social platforms, Apple Pay, eClub and others. Punchh Acquire, previously available only as a private Beta, is now available to all Punchh customers and is being rolled out by Del Taco, Noodles & Co., Pei Wei, Focus Brands and others, according to the release.

The AI and machine learning tools will empower brick-and-mortar retailers with the same data-driven, omnichannel marketing strategies that have allowed digital merchants to continually gain market share. By enhancing the Punchh marketing platform with intelligent and predictive consumer profiles, marketers at every level can create impactful, custom campaigns and offers across national, local, sku or even weather-based strata, Shyam Rao, CEO and co-founder of Punchh, said in the release.

"Companies like Amazon have digital, data-driven, and tailored 1-1 marketing down to a science, while brick-and-mortar retailers are left data-blind and forced to spray and pray. They don't learn from your past purchases, can't recommend products they know you'll buy, and they aren't able to send the right offers to you at just the right time," he said in the release. "Consumers that choose to do their shopping online as opposed to going to the store aren't lazy. Online retailers are simply doing a better job at knowing their customers and keeping them loyal with delightful and customized shopping experiences." 

Punchh is already a global leader in digital marketing solutions for restaurants, which alone would be a fantastic reason to invest in the company, said Jai Das, managing director, Sapphire Ventures. 

"But the scope of their technology goes far beyond just restaurants and encompasses all brick-and-mortar stores with a POS," he said in the release. "We are excited to bring our global network and expertise to help the Punchh team scale their platform to meet the massive, global opportunity of providing Amazon-like customer insights to brick-and-mortar retailers."

As part of the push into new markets, Punchh is also announcing the launch of Fantastic Sams hair care along with TruFusion, a popular chain of yoga, pilates, barre and cycling health and fitness stores, according to the release.

Punchh's network of restaurant customers includes more than 100 restaurant chains across the globe, representing more than $12 billion annual spend by 35 million consumers. 

Leading restaurant brands have already deployed the new Punchh Acquire product during its beta test period, including Del Taco and Noodles & Company. Beyond the thousands of restaurants marketing via the Punchh network in the United States, Punchh products are employed in markets as varied as India, Australia, New Zealand and the United Kingdom.

Punchh partners with Gusto

Punchh, a provider of marketing and brand loyalty technology for foodservice establishments, and Gusto Point of Sale, a provider of a cloud-based enterprise platform, have joined forces to provide a customer relationship management solution for restaurants, according to a company press release.

Gusto clients using Punchh's services can engage with customers across all channels, including kiosk, POS, mobile and web platforms, and emerging foodservice technologies. Gusto receives data and reporting from Punchh, allowing users to predict and act on consumer behavior to drive strategic decisions and increase sales, according to the release.

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Qu

Qu is the restaurant technology company evolving POS, responsibly, for a more sustainable future. With the industry’s first unified commerce platform, Qu’s fully integrated products go beyond fragmented ordering and tech experiences to create healthier connections for restaurant operating teams and their many stakeholders.

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