The Commonwealth Bank of Australia is investing $30 million into a new online venture that aims to be the 'homepage' of online shopping - Little Birdie.
The investment from CBA to Little Birdie translates to a valuation of $130 million – the business claims that this may be one of the largest pre-funding rounds in Australia.
Little Birdie relies on AI technology to allow shoppers to track, follow and compare more than 70 million products, as well as follow price drops and sales events. The platform is expected to launch in mid-June 2021.
According to CBA, Little Birdie will eventually integrate with the CBA app, which will introduce the company to more than 11 million CommBank users. Jon Beros, the Co-Founder and CEO of Little Birdie, commented on the investment, saying the size of the pre-launch fund was ‘reflective’ of its growth strategy and potential.
“We are thrilled to partner with CBA as a shopping content partner. Part of our growth strategy is to integrate major brands with Little Birdie’s shopping content to drive greater engagement and a seamless customer experience,” he said.
CBA is investing $30m into Little Birdie | via CBA
Little Birdie aims to connect shoppers and companies together for better engagement. According to Beros, it’s a ‘pioneering’ retail model that can help reduce abandoned shopping carts and increase overall conversion rates.
“Retailers and brands are looking for new and better ways to connect and engage with shoppers. Consumers are bombarded with messages and options on a daily basis making shopping online an overwhelming experience for many, leading to abandoned shopping carts and customer churn,” he said.
“Little Birdie solves this problem with its pioneering retail model that provides shoppers with a smarter and more convenient way to shop. Retailers also take advantage of a new customer acquisition channel that delivers highly qualified customers. We believe that Little Birdie will become a daily habit for savvy shoppers.”
Angus Sullivan, the Executive of Commonwealth Bank Group said that the partnership ‘marks a shift’ in the Australian e-com landscape by ‘seamlessly blending banking and shopping and bringing the experience together’.
“Customers appreciate the relationship between their banking and spending, and are increasingly looking to their bank to help them manage their money and save for their goals,” he explained. “We believe customers should have access to the world’s best digital experience and our partnership with Little Birdie will give customers access to exclusive industry-leading deals via the CommBank app.”
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