Kevel Raises $52 Million For Retail Media Expansion

Kevel, a retail media infrastructure company, has announced a $52 million Series D funding round, according to AdExchanger. The company plans to use the funds to explore potential acquisitions, with CEO and Founder James Avery stating that consolidation in the retail media industry is likely to occur. Avery noted that there are many retail media players, and consolidation is inevitable.

The funding round includes strategic investments from Fulcrum Equity Partners, Dunnhumby Ventures LLC, Iberis Capital, and additional growth capital from ORIX USA. Kevel's total funding now stands at just over $100 million. Avery stated that the company is close to profitability and expects to reach this milestone by the end of the year.

Avery was cautious about revealing potential acquisition targets, but suggested that Kevel may look at vendors in adjacent areas, such as tech providers used by retailers alongside Kevel. However, he emphasized that the company is not rushing into any deals and may wait for better opportunities. Avery noted that prices for potential acquisitions vary, with some being reasonable and others still being high.

Kevel's focus on transparent AI decisioning is a key aspect of its business, with Avery likening it to forensic science. The company provides detailed information on ad auctions, bid prices, and decision-making processes, which retailers can use to diagnose and improve performance. Avery argued that transparency is essential for building trust with retailers and that it can also lead to better performance.

The company is also working to address the issue of fragmentation in the retail media industry, where every retailer's network works differently. To combat this, Kevel is working with Tesco's retail media arm, Dunnhumby, on the Dunnhumby Network Alliance, an aggregator that allows brands to reach multiple retailers in one buy. Additionally, Kevel has partnered with platforms like Pacvue and Skai to enable API-based buying, making it easier for brands to buy ads across multiple networks.

Kevel's CEO, James Avery, is also watching the developments in the open web, particularly the court-ordered changes to Google's ad tech. Avery, who was a witness in the DOJ's ad tech antitrust trial against Google, welcomes the changes, which will require Google to share bid data with publishers and integrate AdX with Prebid. Kevel still runs a traditional ad server and is looking forward to integrating with AdX, which Avery believes will benefit the company's publisher clients.

Overall, Kevel's funding round and expansion plans demonstrate the company's commitment to growing its retail media business and addressing the challenges faced by the industry. With its focus on transparency, aggregation, and integration, Kevel is well-positioned to capitalize on the opportunities in the retail media market.