In the age of Groupon where consumers are constantly looking for discounts online, Melbourne-based startup Little Birdie has hit paydirt with its idea to aggregate thousands of retail brands into one platform where AI technology alerts users to the latest sales and exclusive offers along with vouchers and prizes.
Commonwealth Bank (ASX: CBA) is so confident in Little Birdie's pre-launch business model and how it can be weaved into its own banking offering, that it has invested $30 million in the company to give it a valuation of $130 million.
Co-founded by former Latitude Pay GM Jon Beros, Little Birdie intends to be the "new homepage of online shopping" with more than 70 million products available to search, compare, track and share from brands ranging from Lego to Endota to The Iconic.
CBA also plans to integrate Little Birdie shopping content into its own CommBank app with curated experiences for its 11 million-strong customer base.
The capital will be used to further enhance Little Birdie's platform as well as fast track its growth and international expansion plans.
Jon Beros, who is also Little Birdie's CEO, says CBA's interest in Little Birdie and the size of the pre-launch funding round is reflective of the company's growth 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," says Beros.
"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.
"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."
Commonwealth Bank group executive Angus Sullivan says the partnership marks a shift in the e-commerce landscape in Australia, 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," says Sullivan.
"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."
Little Birdie is expected to launch in mid-June.
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support