Helsinki-based e-commerce platform Nosto has acquired content marketing startup Stackla. This is Nosto’s first acquisition and a strong entry into the Australian and South Asian markets. To date, Nosto has raised $32.8 million across 4 rounds from investors including OpenOcean Capital, Idinvest, Sanoma Ventures, Tesi, EIB, Wellington Partners and Kreos Capital.
Terms and conditions of the deal were not disclosed.
Founded in 2011 by Antti Pöyhönen, Jani Luostarinen and Juha Valvanne, the Nosto platform empowers retailers to deliver a personalized shopping experience every step of the way. Using an AI-based mechanism, retailers can launch individual omnichannel marketing campaigns, all without the need for dedicated and expensive IT resources. Ultimately, retailers such as Paul Smith, Champion and Woodhouse Clothing, in over 100 countries around the world using Nosto, reported increased conversion and revenue.
Stackla was founded in 2012 by Damien Mahoney and Peter Cassidy, the Australian-based US transplant company specializing in user-generated content marketing. Also AI-driven, the company’s technology actively seeks, discovers and recommends content, reducing content costs while improving personalized shopping experiences. Stackla counts Canon, Disney, McDonald’s, Toyota, Sony, Lush Cosmetics and Nintendo among its customer base.
With 79% of consumers saying user-generated content affects their purchasing decisions and are 6 times more likely to pull the trigger when a product includes images from social media, the synergies between the two companies offer a strong USP to retailers.
“As online shopping accelerates and we crave human connection, consumers are increasingly looking for real and relevant user-generated content they trust to help them make purchasing decisions. “, says Jim Lofgren, CEO of Nosto (and former CEO of Klarna North America). “At the same time, brands are struggling to create enough engaging and diverse content to deliver the kinds of authentic, personalized experiences consumers expect. Nosto’s leading commerce experience, we can solve this problem for brands; empowering them to create more meaningful shopping experiences that drive results.”