Mumbai-based adtech startup Profitwheel has raised $3 Mn in a seed funding round led by Netcore Cloud. Angel investors like Vallabh Bhansali of Enam Group, KRS Jamwal of Tata Group, Dinesh Agarwal from Indiamart and others also participated in the round.
Profitwheel is a customer data-led SaaS startup that helps its ecommerce clients with the best ways to engage with their most valuable customers using digital advertising. It uses the clients’ first-party customer data to identify their most valuable customers and devise ways to engage them.
The startup currently works with a few D2C startups who have signed up for paid pilot tests. With its current business model, it charges clients a flat SaaS fee along with a commission based upon the extra profit it was able to generate with its recommendation.
The startup’s platform uses multi-touch attribution systems to monitor the results of its clients’ digital advertising efforts.
The startup will invest the funds raised towards expanding the tech team in a bid to increase its product offering, and a sales and marketing team to scale the business.
Profitwheel was founded in 2020 by Vivek Bhargava who has spent more than 20 years working in the adtech industry. Nielsen’s Aman Khanna and Gautam Mehra recently joined ProfitWheel as cofounders. The former has been involved with the startup’s US operations since its inception.
The global digital advertising market is expected to grow at 7.7% between 2021 and 2026 to reach $626 Bn. The total spending on digital advertising reached over $300 Bn in 2020.
Due to the way in which digital advertising works, digital ad spends will increase in proportion to the increasing number of brands competing for the same customer attention. As companies are forced to spend more money for the same results, they will need newer adtech technologies to help them optimise their ad spends.