Namogoo, the Herzliya, Israel-based company that has developed a solution for e-commerce and other online enterprises to prevent “customer journey hijacking,” has raised $40 million in Series C funding.
The round is led by Oak HC/FT, with participation from existing backers GreatPoint Ventures, Blumberg Capital, and Hanaco Ventures. It brings total raised by Namogoo to $69 million, and sees Matt Streisfeld, Partner at Oak HC/FT, join the company’s board.
Founded by Chemi Katz and Ohad Greenshpan in 2014, Namogoo’s platform gives online businesses more control over the customer journey by preventing unauthorized ad injections that attempt to divert customers to competitors. It also helps uncover privacy and compliance risks that can come from the use of 3rd and 4th party ad vendors.
More broadly, Namogoo says that customer journey hijacking is a growing but little-known problem that by some estimates affects 15-25 percent of all user web sessions and therefore costs e-commerce businesses hundreds of millions in lost revenue.
Unauthorized ads are injected into consumer web browsers – on the consumer side, typically via malware the user has unintentionally installed – meaning that e-commerce sites are often unaware that it is even happening. This results in product ads, banners, and pop-ups which appear when visiting an e-commerce site. The ads disrupt the user experience, hoping to send them to competitor sites.
Namogoo says that retailers using its technology see conversion rates increase between 2-5%, which in the first half of 2019 totalled over $575 million in revenue for Namogoo customers. It is used by more than 150 global brands in over 38 countries, including Tumi, Asics, Argos, Dollar Shave Club, Tailored Brands, Upwork, and others.
Meanwhile, Namogoo will use the new funding to further expand its client-side platform offerings, beginning with the launch of its “customer privacy protection solution”. “The solution detects and mitigates against customer privacy risks associated with 3rd- and 4th-party vendors running on company websites and applications,” explains the company.