Egyptian startup Convertedin has secured $3 million in a seed funding round led by Saudi Arabi-headquartered Merak Capital. Other participants in the funding round include 500 Global and MSAS.
Convertedin operates a marketing operating system for e-commerce brands and plans to use the funds to hire new talents and scale its operations. Convertedin helps e-commerce companies to make informed decisions by unifying the various amounts of available data; it helps them grow revenue, increase the rate at which people are converted to customers, achieve goals, etc.
The startup was founded back in 2019 by CEO Mohamed Fergany with Mohamed Atef and Mustafa Raslan. Prior to founding Convertedin, CEO Mohamed Fergany worked with various brands including Vodafone and Speakol, and he decided to launch Convertedin to help offline stores to retarget and retain their customers online while finding new ones to shop at their offline stores. While speaking in an interview, the CEO said that “If you walk into IKEA and they take your phone number down. After that, our engine works to find a similar product you might buy and we retarget you online. If you went back to IKEA for that product, we can calculate the cost of online conversion. This was the main idea at this time as we saw a huge problem where there was no analytics platform for the offline store or a retargeting mechanism.”
The advent of the pandemic, however, forced Convertedin to move its business online. Many offline stores were forced to either become e-commerce platforms or move their business online, and this worked well for Convertedin.
According to CEO Mohamed Fergany, Convertedin offers a solution that helps online brands effectively utilize their data. He is of the opinion that although many of these brands use CRM software to gather data, they do not utilize most of it. Convertedin can do a whole lot more such as placing customers into categories and using insights to create personalized multi-channel marketing and drive various campaigns on social media, SMS, email, search, and other channels while having the ability to track and attribute revenue conversion.
Convertedin claims that SMB e-commerce marketers that use its solution see a 2x increase in return on ad spending (ROAS) while reducing customer acquisition costs (CAC) by as much as 40 percent.
The company currently runs partnerships with media buying and advertising agencies. It also works with at least 100 domestic and foreign brands across Africa, the Middle East, and South America across sectors like healthcare, automotive, and technology industries.
Convertedin’s CEO says that revenue has been growing in double-digits month-over-month. Apart from Egypt, the company has offices in Saudi Arabia and Brazil where it recently opened. The company has big goals – it plans to make its services available in Portuguese for brands in Brazil and Mexico. Its services are already available in English and Arabic.
The company also had its eyes on South Africa and India. “We focus on emerging markets and if you look at it from healthy unit economics, we can sell easily in those countries because there is low competition there. And customer acquisition cost is low compared to the U.S. or Europe markets.” CEO Mohamed Fergany said about the expansion to five new markets, including Saudi Arabia. Part of the funding received will be used to fuel this expansion quest.