Aforza Secures $22M to Expand into US Market

Aforza Secures $22 Million in Series A Funding

Aforza, a company specializing in the development of cloud-based and mobile applications for businesses in the consumer goods sector, has announced the successful completion of a $22 million Series A funding round. The investment was spearheaded by DN Capital.

Addressing Challenges in Consumer Goods Distribution

Based in London, Aforza’s technological infrastructure is constructed upon the Salesforce and Google Cloud platforms. This allows consumer goods companies to undergo digital transformation, specifically targeting inefficiencies in product distribution and enhancing customer engagement. CEO Dominic Dinardo explained to TechCrunch that this addresses issues such as unprofitable promotional activities and diminishing market share.

The company leverages artificial intelligence to provide product recommendations and forecast retailer orders, factoring in promotional strategies, pricing, and geographical locations.

Market Opportunity and Current Industry Limitations

Forecasts indicate that the global market for consumer packaged goods applications will reach $15 billion by the year 2024. Despite this potential, a significant portion of the industry continues to rely on outdated systems.

These legacy platforms can result in as much as a 5% loss in sales due to stockouts, according to Dinardo.

Company Origins and Leadership

Aforza was founded in 2019 by Dominic Dinardo, Ed Butterworth, and Nick Eales. All three founders are experienced professionals with prior tenures at Salesforce, recognizing a gap in digital solutions tailored to the consumer goods industry.

Learning from Industry Leaders

This venture marks Dinardo’s first experience as a company leader. However, his time at Salesforce provided invaluable experience, which he describes as akin to attending “Marc Benioff’s School of SaaS.”

The company previously secured an undisclosed seed funding round in 2019, with participation from Bonfire Ventures, Daher Capital, DN Capital, Next47, and Salesforce Ventures.

Pandemic Impact and Validation

The onset of the COVID-19 pandemic prompted increased investor confidence in Aforza’s vision, serving as validation of the company’s approach, Dinardo stated.

He further explained that even prior to the pandemic, the consumer goods sector faced challenges from new market entrants and the limitations of existing systems. The pandemic then severely restricted access to customers.

“Our core objective is to enhance consumer experiences through more sustainable products and packaging, while simultaneously empowering companies to become more adaptable and responsive to evolving market dynamics,” Dinardo added.

Investor Participation

In addition to DN Capital, the Series A round included investments from Bonfire Ventures, Daher Capital, and Next47.

Bonfire Ventures' Perspective

Brett Queener, a partner at Bonfire Ventures, revealed that his firm actively incubated Aforza alongside Dinardo and Eales – an atypical practice for Bonfire Ventures. He identified a unique opportunity to invest in the company at its inception.

Queener, also a former Salesforce employee, observed the consumer goods industry as ripe for technological disruption, driven by increasing customer expectations for immediate product availability and the emergence of direct-to-consumer startups.

Accelerating Growth with New Funding

These startups often lack the resources to develop the necessary technology independently. Aforza provides a solution by enabling companies to create products that function seamlessly both online and offline, across all devices.

Furthermore, Aforza allows for real-time adjustments to promotional spending, moving away from traditional quarterly planning cycles.

“This funding will enable Aforza to broaden awareness of its technology, expand its presence in the U.S. and Europe, increase investment in research and development, and implement the proven Salesforce playbook,” Queener explained.

Future Plans and Expansion

Dinardo plans to allocate the new funding towards continued R&D efforts and to double the company’s workforce over the next six months. This expansion will coincide with the establishment of a new U.S. headquarters in the Northeast region.

Aforza currently serves customers in 20 countries.

Drawing on Past Successes

Dinardo intends to leverage his experiences at previous startups, such as Veeva and Vlocity (acquired by Salesforce in 2020), as benchmarks for Aforza’s future achievements.

“With the necessary capital and expertise now in place, we can focus on strategic hiring, investing in new product offerings, enhancing our digital assets, and exploring integrated payment solutions,” he concluded.