Retail media startup Zitcha raises $15 million to expand in the US

Expanding into the United States is a well-trodden path for Australian startups, but local retail media startup Zitcha now has $15 million in fresh capital to help it accelerate its expansion stateside.

Founded by CEO Troy Townsend and COO Jack Byrne, Zitcha is already used by global consumer brands such as Unilever, Microsoft and Lego, as well as leading retailers in seven regions, including Coles in Australia, The Warehouse Group in New Zealand and Ocado in the United Kingdom.

It plans to open new U.S. offices and hire sales and customer service teams there, and Townsend will move to the U.S. to lead those efforts.

Zitcha aims to offer retailers and brands more sophisticated, data-driven advertising solutions. The software platform allows retailers to essentially create their own retail media network (RMN) to sell advertising space to vendors looking to reach retailers’ customers.

The platform automates these digital asset transactions. such as websites, email and applications, as well as in-store displays.

Networks are unique to a specific retailer and tailored to its business model and customers, combining planning, delivery and insights in one place.

The $15 million Series A round was led by US investment firm VMG Partners and represents the first investment in an Australian company by its venture arm, VMG Technology.

Australian venture capital firm OIF Ventures, which previously invested in Zitch in a $4.7 million seed round in 2022, also participated in the round.

Zitcha is already present in the US market, where, according to Boston Consulting Group forecasts, retail media revenues will exceed $100 billion in the next two to three years. The startup formed a strategic partnership with Axonet earlier this year to leverage store data and retail media touchpoints across tens of thousands of convenience stores across North America.

Now he wants to pursue what Townsend describes as a “huge opportunity for Zitch” in the US.

“Our platform is uniquely positioned to help retailers and brands take full advantage of the third wave of digital advertising, and as America’s retail media networks mature, the demand for integrated, data-driven advertising solutions has never been higher,” he said in a statement to the company Smart Company.

“With this investment from VMG Partners and their deep experience in consumer brands and retail technology, we are excited to capitalize on the tremendous opportunities America has to offer.”

However, despite the lure of the “hot retail media ecosystem” in the US, Bryne said Zitcha would continue to prioritize Australia, New Zealand and other key territories in Europe and Asia.

“We are a proud Australian-founded company and we are committed to ensuring that retailers and brands continue to receive the best of what we offer and the level of service they expect,” he said.

Zitch will continue to be headquartered in Australia, and the platform and engineering center will remain in the Asia-Pacific region. Bryne will manage Zitch’s operations outside the United States, where Townsend will now be headquartered.

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