Okendo Raises $5.3M to Empower DTC Brands with Customer Data

The Evolution of Direct-to-Consumer Relationships

Significant expansion in direct-to-consumer (DTC) commerce has been observed recently, yet numerous brands are discovering opportunities to further strengthen their direct connections with customers.

Okendo, a company headquartered in Sydney, has gained prominence by developing a widely-used customer reviews platform tailored for Shopify merchants.

However, the company is now broadening its scope to address a more substantial challenge: assisting brands in enhancing the quality of their first-party data and reducing their dependence on major technology companies for customer acquisition and engagement.

Addressing Reliance on Big Tech

“A large number of DTC brands continue to heavily rely on Big Tech platforms,” explains CEO Matthew Goodman in an interview with TechCrunch.

The initial step in resolving this issue involved collecting more customer review data directly from consumers.

Okendo’s existing product facilitates the management and presentation of customer ratings, reviews, user-generated content, and product inquiries.

Looking ahead, Okendo intends to aid companies in managing the complex network of their cross-channel customer data.

This will involve standardizing the data and enabling them to deliver more personalized shopping experiences.

The Impact of Privacy Changes

Goodman emphasizes that merchants are focused on achieving their objectives and gaining a deeper understanding of their customer base.

He notes that as brands grow, they often encounter difficulties managing large volumes of data.

Changes such as Apple’s App Tracking Transparency and Google’s planned phase-out of third-party cookies have prompted brands to prioritize the expansion of their own data sets.

This proactive approach aims to protect them from potential disruptions caused by shifts in tracking policies.

Securing Funding for Growth

To effectively tackle this challenge, the company has secured its first round of funding since its launch in 2018.

Okendo has raised $5.3 million in seed funding, with Index Ventures leading the investment.

2020 proved to be a year of substantial growth for the startup, coinciding with a surge in e-commerce activity and increased scrutiny of scaling strategies.

During that year, the company tripled its Annual Recurring Revenue (ARR) and doubled its workforce.

Notably, Okendo was profitable at the time of the funding round, according to Goodman.

A Growing Customer Base

Currently, Okendo serves over 3,500 DTC brands within the Shopify ecosystem.

This includes prominent names such as Netflix, Lego, Skims, Fanjoy, and Crunchyroll.

While the specifics of future product launches remain confidential, Goodman indicates that the startup plans to enter two new market segments within the next 12 months.

The company is focused on innovation and expanding its offerings to meet the evolving needs of its customers.