OfferFit – a marketing technology company empowering marketers to replace traditional A/B testing with automated experimentation – recently announced a $25 million Series B funding round led by Menlo Ventures. Ridge Ventures joined the round with earlier investors Canvas Ventures, Harmony Partners, Alumni Ventures Group, Carbide Ventures, and Burst Capital. Capital One Ventures (the strategic investment arm of Capital One) also participated in the round following Capital One’s success with OfferFit.
JP Sanday from Menlo Ventures joined the board, with Alexander Rosen from Ridge Ventures joining as an observer.
OfferFit will use this funding round to scale while also investing in product development.
OfferFit’s reinforcement learning AI accelerates experimentation for lifecycle marketers as it continuously learns and adapts in response to customer actions. And enterprises such as MetLife, Foxtel Group, and Brinks Home have adopted OfferFit’s AI to automate experimentation.
Companies have recognized that loyal customers can be powerful advocates and create a flywheel effect. And as costs to attract new customers skyrocket, referral sources and targeted campaigns that harness AI offer more efficient avenues for growth.
KEY QUOTES:
“Marketing is undergoing a tectonic shift. AI makes it easy to create content, but how do you measure what is effective? The real power comes from leveraging AI with automated experimentation. OfferFit is the torchbearer in this space, helping businesses leverage 1:1 personalization to optimize critical lifecycle marketing campaigns like cross-sell, upsell, retention, referral, and winback.”
— JP Sanday, Partner at Menlo Ventures
“Today, personalization is table stakes and leveraging AI-based experimentation platforms like OfferFit to automate learning is key to getting personalization right. This enables faster generation of data-driven insights into our customer preferences, allowing us to create more tailored offers and content, and lifting engagement.”
— Aparna Sarin, Chief Marketing Officer for Business Cards & Payments at Capital One
“We have invested in multiple successful AI companies, and we knew OfferFit had the potential to build a meaningful AI enterprise. OfferFit is on pace to triple this year, and they’ve never churned a customer, with every existing customer either expanding or in active discussions to do so.”
— Mike Ghaffary, General Partner at Canvas Ventures – who led OfferFit’s Series A round
“We’ll use this funding to continue to scale, of course. But we’ll also invest heavily in our product. We’re making OfferFit quicker and easier to deploy, and giving marketers more tools to leverage the insights they gain from automating experimentation.”
— OfferFit’s co-founder & CEO George Khachatryan
