Mobile rewards network Kiip has raised $11 million in Series B funding led by Relay Ventures, with participation from others that include existing investors Hummer Winblad and True Ventures.
Kiip said it will use the investment to expand beyond games, presently its dominant usage, and to launch new products designed for use by consumers in addition to its existing business customers.
When implemented in a game or other mobile app, Kiip rewards users with digital accolades and items of real-world value for achievements and reaching milestones. The company said this drives engagement, user retention and revenue far exceeding what mobile advertising can deliver on its own.
Consumers will be offered a new Kiip app, named Kiipsake, this summer. It will keep track of users’ Kiip rewards and activity, and also will help them discover other Kiip-enabled apps and games.
Kipp currently is tracking more than 100 million rewardable events, which in Kiip parlance are called “moments of happiness,” on more than 400 apps in the U.S. The company said its initial engagement rate is 18 to 22 percent, a number that soars to 50 percent for users who have previously redeemed a Kiip reward.
Among the brands already using Kiip are American Apparel, Best Buy, Disney, Dr Pepper, PepsiCo, Popchips, Sony Music, 1-800-Flowers.com and Wrigley.
“It is an honor to receive this infusion from such a renowned group of investors, with the insight and influence to help the Kiip team lead the charge to bring rewards into everyday life,” said Brian Wong, CEO and co-founder of Kiip. “The capital and guidance of our new and existing funding partners will help us create a new, exciting chapter for our company.”
Kevin Talbot, managing director of Relay Ventures, has joined the Kiip board of directors. “Kiip is the first company to identify and effectively leverage the massive mobile rewards market for games and apps,” he said. “We can’t wait to see the way Kiip’s powerful model shapes the way that the advertising industry is thinking about mobile.”
Kiip – http://www.kiip.me
Kiip – press release
Relay Ventures – http://www.relayventures.com
Business Insider – Kiip Raises $11 Million To Erase Advertisers’ Frowns