Amsterdam-based Churned, a company that lets businesses take control over their customer base by leveraging the power of AI with retention management software, announced on Wednesday that it has raised fresh funds in its Seed round of funding.
The investment amount of this round, however, remains undisclosed for now. According to the company, the seed investment was raised in an effort led by Amsterdam-based VC firm Goldfish Global.
Goldfish helps founders to raise capital and realise their exit or secondaries. Additionally, it also enables founders to give back to the ecosystem by investing jointly with Goldfish in early-stage companies.
Dave Dirks, Partner at Goldfish, says, โIn recent years we see the importance of good insight and in-depth analysis and predictability of churn increasing. Many companies donโt have that insight or arenโt able to make a good analysis of it. Buyers and investors need that insight and that analysis in order to be able to estimate the possible value development of the company they would like to acquire or finance, and how the churn ratios can be improved. After our market research, we found Churned to be the company that can solve that.โ
Capital utilisation
According to Churned, the proceeds will be used to further develop its AI-based SaaS platform.
Maarten Doornenbal, the co-founder of Churned, says, โReducing churn by 1 per cent yields 5-15 per cent additional profit. This is a message that we want to spread internationally in order to realise growth. Besides the investments in marketing and sales, a large part of the investment will be spent on the further development of our platform. The back-end is extremely complex, but for our clients, we want to keep the front-end, that which the client sees and uses, as simple as possible.โ
AI-powered retention management software
More and more businesses are turning to subscription-based revenue models, in addition to well-known ones such as newspapers, energy suppliers, software suppliers and services like Netflix and Spotify. These days, this business model is utilised by car manufacturers, coffee suppliers and even cosmetics. But where subscriptions are made, they are also cancelled.
โDue to the increase in subscription models, the importance of retaining customers, also known as retention, has increased enormously. Many memberships allow for monthly or even instant cancellations. This is where Churned steps in.
In 2019, a data science professor, Francisco Blasques, together with his former Masterโs student, Michiel Doornenbal, and Maarten Doornenbal decided to start Churned in Amsterdam. The companyโs name Churned stands for โcancelledโ. The aim was to make churn prevention precise, easy to use, and unrestricted.
Together, the founders have created Churned AI, a data-driven platform for customer management and retention that enables SaaS, B2C, and e-commerce businesses to completely govern their client bases.
Customer success managers, sales representatives, and marketing experts can now collaborate easily with the tools provided by Churned AI to carry out systematic work on customer retention, Customer lifetime value (CLV), and upsell accelerations.
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