Earlier this month, Kevel, an adtech firm previously known as Adzerk, secured $23 million in a Series C funding round. The funding aims to assist retailers in establishing and managing advertising businesses. Kevel's software is utilized by brands like Klarna and Delivery Hero, who pay a monthly fee for services such as managing search ads on e-commerce websites, utilizing an ad server, and accessing an audience tool for collecting first-party data. The company also offers a retail media cloud product that integrates all these services.
Kevel's CEO, James Avery, plans to utilize the funding to expand the team, particularly in sales and marketing. The company has previously focused on research and development and is now shifting its attention to increasing market presence. Notably, Puja Rios, former Chief Revenue Officer at Frame.io, has joined Kevel as President and COO.
Retail media is experiencing significant growth, with a projected global value of $130 billion this year, according to Morgan Stanley. Kevel competes with other adtech firms like Criteo, Epsilon, and Microsoft in assisting retailers in establishing ad businesses. Kevel aims to differentiate itself by offering lower monthly fees and focusing solely on onsite ad formats, where most retail media budgets are allocated.
Kevel is collaborating with the Interactive Advertising Bureau to develop standards that would enable advertisers to purchase search ads across multiple retailers simultaneously through adtech platforms. Avery anticipates having a proof of concept for these standards within six months.
The Series C funding was led by Fulcrum Equity Partners, with participation from Godwin Capital Group, Iberis Capital, Dunnhumby Ventures, and Commerce Ventures. To date, Kevel has raised a total of $40 million.
Overall, Kevel's recent funding round and strategic initiatives position the company to capitalize on the growing retail media sector and enhance its market presence through innovative solutions and competitive pricing strategies.
