E-commerce marketing and packaging startup Penny Black bags investment of £1.3m

Penny Black, an e-commerce platform that turns packaging into a marketing channel, has received £1.3 million in seed funding from AGFA and ninepointfive.

Incubated in AGFA’s innovation lab, supported by ninepointfive, Penny Black launched independently in the UK and Europe in April.

Its software connects e-commerce stores, marketing tools and fulfilment operations to deliver personalised experiences at the moment customers open their e-commerce packages.

The startup, which has raised £2.7 million in total to date, works with the likes of luxury jewellery and watch retailer, PAUL VALENTINE, tea mixology company, Bird & Blend and the online nursery décor store, the Modern Nursery.

Penny Black has also worked with global e-commerce fulfilment providers, like Radial and Cloud Fulfillment, as well as marketing automation firm Klaviyo.

Pieter Van de Velde, Founding Partner from ninepointfive, which has invested £650k in the aforementioned round, says: “Penny Black is one of the only players tackling (and succeeding in delivering) this ‘physical touchpoint’ in a thriving e-commerce market in which there is a growing need of diversification of channels to reach their customers.”

“In a blink of an eye, Penny Black has steadily secured its position in the e-commerce ecosystem, as VC we are delighted with its success and look forward to enabling its future growth.”

Stefanie Donat, Head of Supply Chain and Logistics at PAUL VALENTINE, comments: “We are constantly seeking ways to understand and connect with our customers and using Penny Black's technology we can deliver truly personalised, on-brand experiences that create immediate impact.”

“For example, using its personalised approach we have seen 7% scan rates, resulting in a 15% conversion rate on second purchases.”

Douglas Franklin, CEO, Penny Black, says: “The meteoric rise of e-commerce means that packaging is quickly becoming the only physical contact brands have with their customer.”

“This makes it a hugely influential content channel in its own right, which until now has been staggeringly under-utilised due to the complexity of personalising the fulfilment process.”

“Attracting this latest funding will support us to deepen the platforms we integrate with, strengthen our relationships with our fulfilment partners, and allow brands to use the unboxing moment to secure repeat and recurring revenue.”