Slyce Snatches Up Cellular Couponing App SnipSnap For $6.5 Million
Visible search supplier Slyce is increasing its lineup of cellular purposes profiting from its proprietary picture recognition know-how with the acquisition of well-liked cellular couponing app SnipSnap for $6.5 million. The deal was a mixture of money and inventory, and brings SnipSnap’s four million-plus shoppers to Slyce, in addition to its enterprise product line which Slyce now plans to make out there to its present lineup of shops.
SnipSnap, as you might recall, first debuted to the general public on TechCrunch Disrupt’s stage again in 2012, providing a special tackle cellular couponing. As an alternative of aggregating coupons and offers from affiliate suppliers, the corporate turned to crowdsourcing. Cellular shoppers contribute to SnipSnap’s database of coupons by snapping pictures of printed coupons utilizing their smartphone’s digital camera. The app then acknowledges the textual content and pictures on the coupon, and makes it out there to different customers to find within the app or floor by way of search.
At this time, the SnipSnap app works with coupons for many main retailers and eating places, however not grocery retailer coupons. Up to now, shoppers have clipped one hundred million coupons utilizing SnipSnap’s app, saving them $200 million at checkout.
The startup additionally develops one other product for retailers, which sees its know-how powering the cellular couponing methods for over 50 nationwide retailers together with Mattress, Tub & Past, Toys R Us, Social gathering Metropolis, Ceremony Assist, Lord & Taylor and others. This white label answer lets retailers use SnipSnap to create all their coupons for his or her web sites, cellular apps, SMS and e-mail.
Although a more moderen a part of its enterprise, its enterprise product already accounts for greater than half its income and is the most important space of progress for the corporate.
The corporate additionally permits retailers to run focused, efficiency-based mostly coupon campaigns, reaching cellular customers with offers based mostly on each their location and what they’ve been fascinated about traditionally.
SnipSnap CEO Ted Mann says whereas his service was worthwhile as of this previous summer time, they have been nonetheless within the place of getting to boost more money to proceed to develop the enterprise or associate with one other firm. Slyce ended up on their radar, he notes, as a result of the businesses have been already in discussions a few know-how integration.
The plan was that SnipSnap would exchange its personal picture recognition know-how with Slyce’s, which might reduce the picture processing time right down to just some seconds.
“However we began to consider what else we might do collectively, says Mann. “We traded notes on the client aspect…and we have been speaking to all the identical retailers,” he provides. “We seemed on the alternatives to assist them develop their portfolio of shopper apps and in addition construct out the know-how for retailers to incorporate in their very own apps or cellular web sites.”
The up to date SnipSnap app that includes the picture recognition tech from Slyce is now within the works, due out in February, or on the newest, this spring.
SnipSnap is the fourth acquisition for Slyce, which has been rising its B2C viewers via comparable offers, together with one final yr for cellular purchasing app Pounce, for instance.
Slyce CEO Mark Elfenbein says that M&A is a serious a part of his firm’s technique, and it’s anticipating to do even greater and extra frequent offers sooner or later.
What appealed to Slyce probably the most about SnipSnap, says Elfenbein, was the chance to realize entry to the lively buyer base utilizing its service.
“There aren’t too many apps on the market that you would be able to purchase for that sort of a deal, with that identify model, shopper consciousness, and that has essential mass,” he says, noting additionally that SnipSnap was rising its income at 25% month-over-month in 2014.
He confirms that Slyce plans to take SnipSnap’s enterprise merchandise and promote them into their very own buyer base going ahead, following the deal’s shut.
SnipSnap’s workforce which incorporates 5 full-time staff and some contractors, will proceed to stay based mostly in Philadelphia going ahead and can function autonomously, save for getting access to Slyce assets together with its financing and gross sales staff.