Retail media startup Zitcha raises $15 million to accelerate US expansion
Australian media startup Zitcha has raised $15 million in fresh capital to help accelerate its growth in the United States.
Expanding into the US is a well-trodden path for Australian startups, but local retail media startup Zitcha now has $15 million in fresh capital to help it accelerate its growth Stateside.
Founded by CEO Troy Townsend and chief operating officer Jack Byrne, Zitcha is already used by global consumer brands like Unilever, Microsoft and Lego, as well as leading retailers in seven regions, including Coles in Australia, The Warehouse Group in New Zealand and Ocado in the UK.
It plans to open new offices in the US and hire sales and customer success teams there, with Townsend relocating to the US to lead the push.
Zitcha aims to offer retailers and brands more sophisticated advertising solutions, driven by data. Its software platform allows retailers to essentially create their own retail media network (RMN) to sell advertising space to suppliers who want to reach the retailers’ customers.
The platform automates these transactions across digital assets. such as websites, email and app, as well as in-store displays.
The networks are unique to an individual retailer and tailored to its business model and customers, combining planning, delivery and insights in one place.
The $15 million Series A round was led by US investment firm VMG Partners and represents the first investment in an Australian business by its venture arm, VMG Technology.
Australian venture capital firm OIF Ventures also participated in the round, having previously invested in Zitcha in its $4.7 million seed round in 2022.
Zitcha already has a presence in the US market, where the Boston Consulting Group forecasts retail media revenues will exceed US$100 billion in the next two or three years. The startup formed a strategic partnership with Axonet earlier this year to utilise store data and retail media touchpoints across tens of thousands of North American convenience stores.
Now, it wants to realise what Townsend describes as “an enormous opportunity for Zitcha” in the US.
“Our platform is uniquely positioned to help retailers and brands fully leverage the third wave of digital advertising and as US retail media networks mature, the demand for integrated, data-driven ad solutions has never been higher,” he said in a statement provided to SmartCompany.
“With this investment from VMG Partners, along with their vast experience with consumer brands and retail technology, we are excited to tap into the immense prospects America offers.”
But despite the lure of the “red hot retail media ecosystem” in the US, Bryne said Zitcha will continue to prioritise Australia, New Zealand and other key territories in Europe and Asia.
“We are a proudly Aussie-founded business and are committed to ensuring retailers and brands continue to receive the best of what we have to offer and the level of service they have come to expect,” he said.
Zitcha will continue to be headquartered in Australia and its platform and engineering hub will remain in the Asia Pacific region. Bryne will manage Zitcha’s operations outside of the US, where Townsend will now be based.
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
