Visual product search platform Slyce has acquired mobile couponing company, SnipSnap for $6.5 million. The two companies will combine SnipSnap's technology that lets shoppers turn analog coupons into digital versions with the Slyce's platform that creates shoppable photographs.
With the acquisition, Slyce gains over 4 million SnipSnap mobile shoppers and seeks to position itself as the complete consumer engagement platform for retailers and brands both in and out of store.
SnipSnap Founder Ted Mann will continue to lead SnipSnap, which will remain based in Philadelphia.
SnipSnap uses proprietary image-recognition technology for scanning and interpreting coupons with a mobile device. The SnipSnap app for iOS and Android lets users take a photograph of a retail coupon and turn it into a digital, mobile format, which can be easily searched, retrieved and shared with other SnipSnap users on their smartphones. The app stores all the information—bar codes, expiration dates, cashier codes—and sends expiration date notifications and location-based reminders to users.
SnipSnap boasts 4 million users and has grown revenue 20 percent month over month for the last six months of 2014, according to the company. It has partnership agreements with roughly 50 retailers in North America including Bed Bath & Beyond, Lord & Taylor and Aeropostale.
For Toys R Us, SnipSnap "powers coupons on its app but also provides a white-label platform to create and target mobile coupons across all retailer owned-media channels, including email, Web, mobile app and SMS. In 2015, SnipSnap will expand its offering to support loyalty coupons and social-media campaigns," according to a press release.
"We began working with SnipSnap over a year ago at Lord & Taylor and they quickly proved to be one of the most effective forms of mobile marketing we employed," said Ryan Craver, former SVP strategy for Hudson's Bay Co. (which owns Lord & Taylor and Saks Fifth Avenue in the United States). "SnipSnap's location and behavioral-targeting mixed with micro-location beacons served as the perfect offline to online marketing bridge for stores. I look forward to watching the platform further develop using personalization to drive customer acquisition for other brands and retailers."
"SnipSnap has a patent pending for its process of turning a photograph of a coupon into an in-store redeemable mobile coupon," the company said in a statement. "Slyce will begin integrating its visual-search technology into the app, improving the speed and accuracy of coupon detection for all SnipSnap users. The acquisition will also allow Slyce to combine the SnipSnap technology with its previously acquired Pounce technology into an all-in-one mobile shopping solution incorporating 3D visual search, instant couponing and one-click customer checkout."
"SnipSnap and its 4 million users represent an enormous opportunity for Slyce to widen its service offering to leading retailers," said Slyce CEO Mark Elfenbein. "The team has solved a huge problem for retailers—effectively building a bridge between analog and digital coupon distribution."
-See this SnipSnap announcement
-See this Slyce press release
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