Bornlogic, a Brazilian startup that created a platform through which retail sellers themselves create digital marketing campaigns, announced a BRL 52 million funding round led by Astella Investimentos, which had already invested in Bornlogic in 2020 in a Seed round, and followed by HiPartners, Endeavor Scale Up Ventures and Marcelo Lombardo, CEO at Omie.
Founded nine years ago by André Fonseca, Bornlogic started by offering a machine learning algorithm for better allocation of resources for digital marketing. The business evolved and today the startup has a platform that offers insights for companies, sellers, and the marketing team – such as data on which campaigns perform best, in which channel and format, among others – so that the sellers themselves can create more efficient content about the products. Through the platform, the client companies also allocate the advertising budget among the stores and sellers.
“To improve business strategies, companies need to go beyond reach and engagement metrics. We deliver data about Product Sales, Category and Brand by measuring the increase in sales and the performance of each salesperson. Today nobody brings this data, which is fundamental for more assertive strategies,” explained Fonseca.
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The sellers, and now content creators, also have access to an app that provides tips and video ideas prepared by the company and Bornlogic’s machine learning system, with suggestions on which product to advertise, for example. To avoid any problems for the company’s reputation, the startup has also created a curation system, in which before being posted on Facebook, Instagram or TikTok, the content needs to be approved by a store manager.
According to Bornlogic, last year the client companies – among them Magazine Luiza, Renner, Americanas, Via, and Carrefour – posted more than 7 million videos created from the insights by the startup’s algorithm. Besides, since 2013, the startup has been a business partner of Meta, developing artificial intelligence for media buying for major brands. Bornlogic’s growth turning point happened right when the company showed retailers and the industry that putting salespeople as protagonists in the digital world would speed up sales and improve relationships with consumers.
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“When the seller creates authentic, personalized, local content on social media, they connect with consumers at high levels of engagement. This ability to charm customers has been hampered by the separation of physical and online. But the digital transformation of sellers resumes the ability for retailers to improve consumers’ shopping experience,” said Fonseca.
Bornlogic uses a monthly subscription model based on the number of stores and sellers registered on the platform and charges a take rate on virtual and in-person sales generated from campaigns created using the startup’s technology. Fonseca explained that to map these sales in physical stores, Bornlogic created a system connected to the client’s ERP, so that if the sale of a product increases after a campaign, the startup can attribute at least part of this increase to the solution.
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Series A comes a year after the Seed round; in that time, according to the startup, annual revenue has jumped 243% and the customer base has grown from 27 to 65. The new investment was raised in order to fund specific solutions for industry and service players, such as decentralized sales networks, in addition to scaling the operation.
According to Marcelo Sato, partner at Astella, the company decided to invest in Bornlogic due to the originality and scale potential of the product developed by the startup. “No one else in the market offers a solution like this. The integration of the purchase journey between in-person and virtual environments is already part of reality, and communicating more closely with the consumer makes all the difference in customer loyalty. Bornlogic’s potential is huge, the solution can be applied across a wide range of industries.”