ITC Holdings and Kinetic Ventures Lead $18 Million Funding Round In Growth Capital for Cardlytics

Based in Atlanta, Georgia, Cardlytics is one of the leaders in the credit card transactions of today’s markets. The company announced on August 16, 2010 that it has raised $18 million in growth capital with two new investors onboard. The two new investors are ITC Holdings and Kinetic Ventures, who also led the funding round. Other investors who participated in this funding round include the company’s existing investors: Canaan Partners, Polaris Venture Partners, and Total Technology Venture Partners.

Ever since its inception, Cardlytics has disrupted the financial markets and has changed the way people do business with credit card transactions online. The unique technique that Cardlytics has developed is the system it has created to help online merchants reward their customers according to their individual purchasing behavior. What is the most interesting feature of Cardlytic’s platform is that card transactions can be used by earning rewards both online and offline. How does this work? Well, it’s quite simple. The technology that Cardlytics has developed literally traces all the purchases that consumers make with their credit cards. In doing so, the technological platform that Cardlytics has developed is the very first platform that can actually track the transactions offline through a digital channel. The data from all the purchases can then show financial institutions, advertisers, and merchants the individual tastes of the consumers. Furthermore, the data can be used to reward consumers for their purchasing behavior by allowing for merchants to offer exclusive savings for those consumers who buy their products on a regular basis.

According to Scott Grimes, CEO of Cardlytics, the company’s amazingly strong direct marketing platform coupled together with a strong financial institutional footprint allows for it to attract enormous amounts of capital from many strategic investors.

As par to the agreement of this enormous funding round, Campbell P. Lanier of both ITC Holdings and Kinetic Ventures will join Cardlytic’s board of directors. Mr. Grimes further commented about this by stating that he welcomes Mr. Lanier to the company’s board of directors and believes that Mr. Lanier has deep experience in the growth and governing of a high-growth business. Mr. Grimes further added that Mr. Lanier’s addition to the board will be a great asset to the company.

According to Mr. Lanier, the idea of direct marketing being fused together with credit card transactions redefines the idea of direct marketing. The ability for retailers to use Cardlytic’s platform to trace customer purchases allows them to be able to reinforce customer loyalty by giving great savings to these customers, enticing to come back and make more purchases at the advertising retailer.

Kinetic Ventures is a leader in venture capital firms who invest in high growth companies who are in the information, energy, clean tech, and tech industries. The VC firm currently has offices in Atlanta, Georgia and Chevy Chase, Maryland. Some other companies in Kinetic’s portfolio include Alereon, Ample Communications, APX, Aztek Networks, Clear Standards, and others.