QR Code Startup Raises $5 Million - Coatue & Seven Seven Six Lead

Revolutionizing Re-ordering: Batch Aims for One-Tap Purchases

Amazon’s success with one-click shopping has established a new standard, reflected in its substantial market capitalization of nearly $2 trillion.

Now, Batch, a startup comprised of ten individuals and founded by JD Maresco – previously a co-founder of the Citizen public safety application – intends to significantly streamline the re-ordering process for retailers selling directly to consumers. This will be achieved through the implementation of QR codes.

Leveraging Apple’s App Clip Technology

Currently, Batch is primarily dependent on Apple’s App Clip technology. This technology delivers a streamlined, lightweight version of an application, eliminating the need for users to download and install a full app before use.

Instead, a small portion of the app loads on demand, and subsequently disappears once the user is finished. Maresco indicates that Batch plans to expand functionality to both iOS and Android platforms in the future.

Seed Funding and Expansion Plans

Batch recently secured $5 million in seed funding, co-led by Coatue and Alexis Ohanian’s Seven Seven Six, with additional participation from Weekend Fund, Shrug Capital, and The Chainsmokers.

The company’s ambition is to make the physical world “instantly shoppable,” as Maresco explains.

The Unifying Vision: Connecting Physical and Digital Experiences

TC: Citizen and Batch represent distinct ventures. What commonality exists between them?

JM: Throughout my career, I’ve focused on reshaping how individuals perceive and interact with their surroundings. Citizen aimed to provide immediate access to information regarding police activity within communities.

Batch addresses a more straightforward, yet personally significant question: Why is replenishing a beloved product not more convenient? I often encounter frustration with subscription services, frequently requiring manual pausing or restarting.

I envisioned a simpler method – utilizing a smartphone to re-order in seconds. Our phones possess capabilities far exceeding their current utilization, and we sought to resolve this issue.

Shopify Integration and Future Platforms

TC: Presently, Batch’s integration is limited to Shopify, is that correct?

JM: We offer a Shopify plugin enabling brands to connect to the Batch platform. This integration spans the entire process, from the physical world where the QR code resides, to the mobile purchase experience, and ultimately to their backend fulfillment systems.

However, we are actively expanding compatibility to encompass other e-commerce platforms as well.

Transaction Fees and Brand Partnerships

TC: Does Batch levy a per-transaction fee for each item purchased via your codes?

JM: Our pricing model is still evolving, but we currently implement a service fee based on a percentage of the transaction.

TC: How are you attracting brands to collaborate with you?

JM: Brands are increasingly recognizing the potential to establish a novel retail channel directly from their product packaging. This allows customers to shop seamlessly from their homes, workplaces, or any location where they interact with the product when it’s depleted.

We’ve engaged with numerous brands, assisting them in redesigning their packaging to prominently feature QR codes and enhance the customer experience.

Current Adoption and Expansion of QR Code Usage

TC: How many brands are currently utilizing the codes?

JM: We are launching with dozens of brands this summer. The demand has been exceptionally strong, even before our official launch.

TC: Are you providing physical codes – stickers, magnets – or are you also generating digital QR codes?

JM: Our customers are integrating QR codes into various mediums, including out-of-home advertising, direct mail campaigns, T-shirts, and promotional vehicles. We are not restricted to packaging alone.

Securing Investment and Competitive Advantages

TC: Coatue’s leadership in your funding round is noteworthy. Is a seed round typical for the firm?

JM: We connected with them during the seed funding process. I established a strong rapport with Andy Chen and Matt Mazzeo, and appreciated their platform’s support for B2B companies, particularly their robust data capabilities.

Alexis [Ohanian’s] consumer-focused expertise was also highly valuable.

TC: While the concept is sound, what differentiates Batch’s codes from those of competitors?

JM: QR codes are ubiquitous. However, our product simplifies the creation of highly effective shopping experiences and a native mobile interface for brands.

This is achieved through a combination of our Shopify integration, our native product design expertise, and our collaborative relationships with brands, assisting them with packaging optimization – a combination that is not easily replicated.

Addressing Past Concerns

TC: Regarding Citizen’s recent headlines, is there anything you wish to address?

JM: I will refrain from commenting on recent press coverage. However, I remain proud of Citizen’s ongoing efforts to enhance community safety and provide information regarding police and first responder activities.