Engage3, a Davis-based developer of analytics software for retail companies, has raised an additional $7 million in follow-on funding to grow the company.
This new money is on top of a $35 million funding round the company raised at the end of 2021, which was led by Marina Del Rey-based Arrowroot Capital Management, a growth equity firm specializing in business-to-business software-as-a-service companies.
“We had several investors that were interested in investing further into Engage3, and the board approved allowing additional investment given the monster growth that we’re expecting over the next six months,” said CEO Edris Bemanian, in an email.
The investment showed up in a disclosure document filed this week with the Securities and Exchange Commission.
The company is using the money to expand staff and to accelerate the growth of its price optimization software into more segments of retail, Bemanian said.
Engage3 has seven of the 10 largest retailers in the world as customers and nine of the 10 largest convenience retailers in the U.S. and Canada.
In August last year, Engage3 used part of the $35 million funding round from 2021 to buy Dexi.io, a San Francisco-based company that developed artificial intelligence-enabled web crawlers that capture data from websites. That merger doubled Engage3’s employee count to 250 and added new offices in offices in Salt Lake City, Copenhagen, London and Tirana, Albania, to Engage3’s offices in Davis, Phoenix and Atlanta.
The new money is to support growth in more sectors and more countries.
In October last year, Engage3 signed up Paris-based international luxury brand company LVMH Moët Hennessy Louis Vuitton to help the French company modernize its beverage business, which dates back to 1365.
Before the $35 million round in 2021, Engage3 had previously raised $12 million in a round of financing in 2019. Participants in that round included local angel investor Dale Carlsen and Folsom-based venture capital firm Moneta Ventures. It also raised $12 million in 2017.
Engage3 has made the Inc. 5000 list of fastest-growing private companies in the country for seven years in a row. It was on the most recent list in August with 115% growth over the past three years.
Engage3 was ranked No. 13 on the Sacramento Business Journal’s Fastest Growing Companies list in August 2021, with $11.1 million in revenue in 2020, up 100% over three years.
