QR code-based customer engagement platform Beaconstac has secured $25 million as a part of its Series A funding round led by Telescope Partners, with existing investor Accel.
The New York and Bengaluru-based startup will use the fresh funds to grow its platform and build its team, chief executive Sharat Potharaju told VCCircle. Currently, its total headcount stands at 75.
Beaconstac, founded in 2019 by Potharaju and Ravi Pratap Maddimsetty, helps businesses to create and track QR codes, which enable consumers to engage with them.
“In a world where touchpoints between brand and consumer have grown exponentially, there is a pressing need for frictionless technology that meets consumers on and offline and QR codes are rising to the challenge,” said Potharaju.
“This funding gives us the resources to build additional products on our platform as well as continue helping businesses embrace QR codes for customer engagement,” he said.
Beaconstac currently tracks 1.8 million QR codes for brands like Revlon, Nestle, FedEx, and Marriott. More than 90% of its business is based in the US, where customers are accepting QR codes for more than just payments.
“It’s clear QR codes are becoming an integral part of how businesses communicate with their customers,” said Mickey Arabelovic, Founder at Telescope Partners.
“The flexibility and insights Beaconstac delivers for businesses sets it apart from competitors. We believe the company has the vision and ability to become the largest player in the market,” he added.
Potharaju said the company is already profitable, garnering about 85-90% in growth margins, and aims to grow over 4x in terms of revenue this year, but did not share numbers.
Going forward, the startup's plan is to productise QR codes for multiple use-cases that are emerging.
“Brands are focused on QR codes as de-facto technology for choice for bridging physical and digital; our focus is to compete and win in the fast growing market,” said Potharaju, adding that the firm would go beyond organic channels to reach its customers.
The company aims to increase its global workforce to nearly 200 employees by this year end.