Zephr Raises $8M to Boost News Publisher Subscriptions

Zephr has secured $8 million in a recent investment round, spearheaded by Bertelsmann Digital Media Investments, a division of the prominent media corporation Bertelsmann.

The startup, which is based in London, currently serves a client base that includes well-known publishers such as McClatchy, News Corp Australia, Dennis Publishing, and PEI Media. According to CEO James Henderson, communicated through email, Zephr distinguishes itself by concentrating “entirely on the experience and journey for the prospect or customer,” rather than attempting to be an all-encompassing solution. This approach results in an average 150% improvement in conversion rates and a 25% rise in subscription revenue within the initial six months.

Henderson further explained, “Zephr enhances conversion rates, significantly reduces customer churn, and generates new, consistent revenue by delivering the appropriate product, package, or message to the right individual at the optimal moment.”

To achieve this, Zephr primarily utilizes a publisher’s existing first-party data regarding its readership—Henderson emphasized that this data is “by far the most important and powerful type of data that Zephr both uses and generates.” The platform also incorporates contextual data, including factors like “time of day, location, device, or consumption patterns.”

He also highlighted that Zephr operates as a no-code platform, enabling members of marketing, revenue, and product teams without technical expertise to design various customer journeys using a simple drag-and-drop editor.

When questioned about the impact of the pandemic on the company’s performance, Henderson indicated a mix of outcomes, noting record readership numbers alongside instances of reduced spending within newsrooms.

“As organizations prepare for a ‘post-pandemic’ environment, we are observing a growing trend of our target markets capitalizing on the influx of potential subscribers and investing in subscription models—and in Zephr,” he stated. “The traditional publishing and news media model, heavily reliant on advertising revenue, is evolving, and we are strategically positioned to benefit from this shift.”

This latest funding round also includes investment from Silicon Valley Bank UK Branch, bringing Zephr’s total funding to $11 million. Previous investors consist of Knight Capital and Nauta Capital.

The company’s funding announcement details that these funds will be allocated to continued product development—with a particular emphasis on enhanced personalization—as well as expansion into the United States, Europe, and Asia.

“The recent downturn in the advertising market has increased the need for media companies to diversify their income sources and either introduce or refine subscription models,” commented Urs Cete, Managing Director at BDMI, in an official statement. “We acknowledge Zephr’s exceptional technology, which empowers publishers to maximize the potential of online subscriptions and create uniquely tailored customer experiences.”