A revenue generating platform that uses Wi-Fi to push rewards and offers to customers in store.
WiForia is a SaaS business which formed in July 2014. Their platform is an automated location marketing cloud turning a retailer’s public Wi-Fi into a communications channel, enhancing a customer’s in-store experience, delivering more sales and enhanced loyalty. By identifying registered users every time they enter or leave a store, it can push offers, promote content and drive social sharing in personalised and contextually relevant ways whilst delivering valuable insights back to the retailer. The company is already revenue generating (£600k in year 1) and the platform has been used at scale with McDonalds (over 20m engagements).
Products & Services
Wiforia’s SaaS platform is an automated location marketing cloud turning a retailer’s public Wi-Fi into a communication channel, enhancing a customer’s in-store experience, delivering more sales and enhanced loyalty. By identifying registered users’ location within the store, it can push offers, promote content and drive social sharing in personalised and relevant ways while delivering insight back to the retailer. As 76% of purchase decisions are made at point of purchase,the platform gives retailers and brands the ability to talk to customers on a direct,digital and one-to-one basis when the decision is being made.The solution does not require the customer to download an app.
In a report by Boston Retail Partners (Real-time Retail – The New Retail Imperative, June 2015), nearly 2/3 of retailers will identify shoppers by their smartphone as they enter a store by 2020. “Successful retailers realize must work towards a holistic shopping experience that transcends channels and offers contextual guided selling and promotions in real time”. 76% of retailers plan to provide suggested selling based on a customer’s previous purchases within three years, and 83% plan to offer promotions based on a shopper’s geographic proximity within five years.
WiForia’s revenue model is based on three parts:
1. Fixed monthly licence fee based on the number of Wi-Fi access points
2. A per usage fee for each customer engagement
3. Percentage share of advertising revenue generated
In addition, Wiforia have revenue streams for customisation, margin on SMS and dedicated hosting requirements.
The company expects an exit in c 3-4 years when it will be generating revenues of c £41m and profits of £8.5m. There are clearly defined trade exit routes. The company has a strong and experienced management team and the founders have been behind a number of successful exits in the past delivering significant returns for their shareholders.