Launching today out of stealth mode with $600k to empower ecommerce brands to drive revenue and brand loyalty.
Malomo, a software platform that helps ecommerce brands generate more revenue and brand loyalty by turning their shipment tracking into a marketing channel, today launches out of stealth mode with $600,000 in an oversubscribed pre-seed funding round.
Hyde Park Venture Partners and High Alpha Capital partnered to lead the round, with participation from One Click Ventures founders Randy Stocklin and Angie Stocklin, and Formstack founder Ade Olonoh.
Malomo’s platform unites a brand’s ecommerce order data with carrier tracking information. As brands ship orders to customers and the package status changes, brands can proactively message customers with updated tracking information, and include branded communication through their Malomo powered tracking emails and tracking page.
The company is led by serial entrepreneurs Yaw Aning and Anthony Smith who previously ran the digital product agency Sticksnleaves, where they launched more than 100 web and mobile products to market.
“Shipment tracking is an overlooked yet highly engaging communication channel for ecommerce brands,” Smith said. “After implementing Malomo’s solution, our clients are seeing incredible results. Email open rates are 9x higher than traditional marketing emails.”
Consumers that buy products from Malomo’s clients are engaging with their shipment tracking assets on average of 3.6 times per shipment.
“If a brand is shipping 10,000 orders, that’s upwards of 36,000 brand impressions. That’s a lot of impressions most brands aren’t taking advantage of,” Aning said.
Randy Stocklin will join Malomo’s Board of Directors, in addition to Tim Kopp and Eric Tobias joining as board observers.
Ecommerce platform Shopify reported that at the end of 2018 there were more than 800,000 live stores on their platform, up from 575,000 the year before.
“As more brands enter the market saturating advertising channels, brands need novel ways to build relationships with customers,” said Tim Kopp, a partner at Hyde Park Venture Partners. “We think Malomo has found a unique and powerful solution for this.”
The company is currently integrated with Shopify, as well as major US carriers including USPS, UPS, Fedex, and DHL. The funding will help it continue to build out its product, add more integrations, and fuel customer acquisition. The company currently counts Summersalt, Made In Cookware, Bettie Page, and One Click Ventures, among others, as early customers.
"Shipment tracking is a widely undiscovered marketing channel for brands with a major opportunity to build customer loyalty, drive cross-sell opportunities, and deliver delightful experiences," said Eric Tobias, a partner at High Alpha and pioneer in ecommerce. Prior to High Alpha, Tobias founded ecommerce retailers Batteries.com and Technuity and ecommerce software provider iGoDigital. "I spent the first 15 years of my career in ecommerce, and this is an issue every retailer in the world has. We're excited to be backing the Malomo team as they take advantage of this massive opportunity."
Aning and Smith are joined by an all-star team of product veterans including Megan McNames, Kurt Friedrich, and Eddie Cmehil.
For more information about Malomo, visit gomalomo.com
Malomo helps ecommerce brands generate more revenue by turning their shipment tracking experience into a marketing channel. Consumers are most excited after they buy so they check tracking 3.6 times. If you’re shipping 1,000 packages, that’s 3,600 brand impressions. Most brands are sending that traffic to UPS or Fedex, handing it off to a third party and disrupting the customer's branded experience. It's never been more difficult to get and retain customer attention, so every touchpoint with a customer matters. Malomo gives brands the control to turn the typically stale and confusing experience of shipping into an opportunity to drive customer engagement while the customer is most receptive to their brand. For more information, visit gomalomo.com.
About Hyde Park Venture Partners
Hyde Park Venture Partners is an early stage venture capital firm focused on high-growth technology startups in the Midwest. With offices in Chicago and Indianapolis – and a network of advisors throughout the region – we invest in proven startups who have incredible founding teams and fast growth. Our sweet spot is investing in B2B software and consumer marketplace startups raising their first or second round of capital. We also have one of the most robust seed programs in the US. For more information hydeparkvp.com.
About High Alpha
High Alpha, based in Indianapolis, is a leading venture studio and venture firm focused on conceiving, launching and scaling next-generation B2B SaaS companies. The High Alpha portfolio includes Lessonly, Sigstr, Zylo, MetaCX, SalesLoft, Terminus, project44, LogicGate, and more. For more information: highalpha.com.