Lexer Raises $25.5M Series B to Expand Global Customer Data Platform

Lexer Secures $25.5 Million to Enhance Customer Data Capabilities

The significant surge in online shopping accelerated by the COVID-19 pandemic necessitates that retailers rapidly analyze customer data to maintain a competitive edge against industry giants such as Amazon. Lexer, a customer data platform based in Melbourne, Australia, empowers brands by centralizing data management, thereby simplifying the analytical process for small and medium-sized businesses.

Today, the company announced the successful completion of a $25.5 million Series B funding round, intended to fuel expansion initiatives across Australia, the United States, and Southeast Asia.

Funding Details and Investor Participation

This funding round was spearheaded by Blackbird Ventures and King River Capital, with continued support from January Capital. To date, Lexer has raised a total of $33 million. Rick Baker, a co-founder and partner at Blackbird Ventures, will be joining Lexer’s board of directors.

Company Background and Growth

Founded in 2010 by Aaron Wallis, Chris Brewer, and Dave Whittle, Lexer currently serves a diverse clientele including Quiksilver, DC Shoes, John Varvatos, and Sur La Table.

The newly acquired funds will be allocated towards expanding Lexer’s team by 50 employees, with a strategic focus on doubling its workforce in Australia, the U.S., and Southeast Asia.

According to Whittle, the company’s CEO, the investment will also facilitate the addition of new features, providing retailers with advanced customer data, insights, and capabilities across marketing, sales, and service functions.

Leveraging Data for Increased Sales

Brands utilize Lexer to drive incremental sales growth, encompassing both existing and new customer acquisitions.

This is achieved by gaining a deeper understanding of customer shopping behaviors across various visitor segments, identifying customers with the highest potential for future purchases, and optimizing marketing strategies for maximum sales impact.

Competitive Landscape

Lexer’s primary competitors include Segment, which was acquired by Twilio for $3.2 billion last year, and Adobe Analytics.

Whittle emphasizes that Lexer’s core strength lies in its provision of a comprehensive, end-to-end solution.

A Unified Platform Approach

Unlike many brands that rely on multiple data and analytics tools to consolidate information from disparate sources, Lexer aims to offer a single, integrated platform.

“Our clients avoid the need for costly and time-intensive external consultants for strategy, implementation, customization, and project oversight,” Whittle explained.

Expanding Market Focus

Prior to this Series B funding, Lexer’s growth was primarily driven by individual brands and groups of mid-market retail businesses.

The company is now broadening its focus to encompass brands of all sizes, as Whittle noted.

The Impact of the Pandemic

The pandemic has compelled numerous brands to prioritize digital engagement to bolster online sales and differentiate themselves within the competitive e-commerce landscape.

“We have empowered our customers with hundreds of strategies to navigate the challenges and restrictions imposed by COVID-19.

For instance, we assisted retailers in transitioning customers from offline to online shopping channels,” Whittle stated.

“Furthermore, when faced with inventory shortages due to supply chain disruptions, we helped retailers prioritize their most valuable and loyal customers to ensure continued satisfaction.”