Skupos, a retail technology company, plans to expand to serve more convenience stores after receiving $22.5 million in venture capital this month.
One of the funders is affiliated with Brex, a San Francisco fintech startup that received billions of dollars in deposits this month from Silicon Valley Bank customers who withdrew cash from the bank, according to CNBC.com. In a government-backed deal announced Sunday, Raleigh, North Carolina-based First Citizens BancShares agreed to acquire First Silicon Valley Bank, The New York Times said Monday.
Brex Asset Management and SQN Venture Partners pointed to Skupos’ data set as one reason they agreed to provide the new investment capital to San Francisco-based Skupos.
“Skupos has built the largest network of independent convenience stores in the United States, and with it, a proprietary data set that is difficult to replicate. The tools and insights generated by their network give brands true visibility and granular business intelligence," said Benjamin Wu, CEO of Brex Asset Management.
Skupos aims to help convenience-store operators increase sales volume through solutions connecting retailers and brands to shoppers. The company focuses on independent retailers and small chains, which make up about 80% of the market. Its Skupos Engage solution helps convenience retailers test and measure targeted discount promotions using its base of over 1 million consumers who shop at independent c-stores and small convenience chains. Without a data aggregator, these insights are difficult to achieve because of the fragmented nature of the convenience-store industry.
The promotions, many of which are designed to bring new shoppers to convenience stores, tie-in to point-of-sale (POS) systems, allowing brands to more easily measure performance. The company, which started in 2016, said it has a network of over 15,000 retailers throughout the nation.
Skupos plans to use the new investment capital to expand. “As Skupos continues to scale up following a year of high growth in 2022, capital partners like Brex and SQN are vital in order to capitalize on the long-term business opportunity,” said Jake Bolling, cofounder and chief executive at Skupos Inc.
“We are thrilled to continue building and scaling industry-defining products and services and look forward to this next leg of the journey,” Bolling said.
Fintech company Brex launched a new fund in September 2021 to provide companies with growth capital. It works with Brex Asset Management to select the high-growth startups it will fund and help their management their management teams expand their the businesses. Brex offers a solution geared to fast-growing companies that combines financial services and business software. Private equity and venture-capital firms, such as Kleiner Perkins, Ribbit Capital and Lone Line Capital are backing Brex.
Serial entrepreneurs and finance professionals started SQN Venture Partners, based in Charleston, South Carolina, in 2015 to use alternative debt financing to help grow early to mid-stage companies. It has provided senior term loans, equipment financing and lines of credit to technology companies.
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