Wednesday, 19 August 2020 12:30

Woolworths Group leads $2.25 milion Longtail UX capital raise

Longtail UX co-founders and co-CEOs Will Santow and Andreas Dzumla with W23 managing director, Ingrid Maes at Dan Murphy’s Mosman Longtail UX co-founders and co-CEOs Will Santow and Andreas Dzumla with W23 managing director, Ingrid Maes at Dan Murphy’s Mosman

Australian founded tech company Longtail UX has announced a $2.25m supplementary equity raise in partnership with Woolworths Group’s venture capital arm and Steven Lew owned group, Global Retail Brands (GRB).

The investment builds on the Longtail UX $3m funding round led by Investec back in March of this year when COVID-19 first hit.

Longtail UX says the Investec raise originally allowed for a further $1m of investment, however interest in the company’s technology was “so strong from both W23 and GRB that the cap was raised to accomodate more than double that commitment”.

According to Longtail UX, with COVID-19 forcing businesses to move online with more urgency than ever, “tech solutions like Longtail UX have come into greater demand”.

“As budgets are being scrutinised across the board, business leaders are turning to new options to acquire online customers at a predictable ROI, a particular feature of Longtail UX that appealed to companies such as Kogan, Adore Beauty, GraysOnline and Dan Murphy’s, that have used Longtail UX’s patented technology,” Longtail UX said in a statement issued on Wednesday.

Longtail UX co-founder and co-CEO, Will Santow, commented: " We’re delighted to now have the incredible support of W23, Woolworths Group’s venture arm, as a new partner and shareholder.”

“The investment is double what we’d 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’ve created something truly special and they feel they can help drive us towards the next stage of our journey.”

Longtail UX says the partnerships have already seen Stevie Lew owned group, Global Retail Brands, implement Longtail UX’s technologies, with further brands to benefit over time - and “the W23 and Longtail UX partnership will explore how to expand the use of Longtail UX’ technologies across Woolworths Group brands”.

Ingrid Maes, Managing Director W23 said: “Our investment in Longtail UX continues our 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.”

Longtail UX says the investment will further support the company’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. LUX Shopping measurably increases the ROI of e-commerce advertising by improving the shopper journey on clients’ websites.

Longtail UX Co-Founder and Co-CEO Andreas Dzumla said: “We’ve 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.”

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