Amsterdam-based Churned, an AI platform for subscription businesses, announced that it has raised €2.5 million in a funding round led by Newion and Volta Ventures, with support from existing investor Goldfish.
The funding will fuel growth and international expansion, help the company predict and prevent customer churn, and increase customer lifetime value.
“Monitoring customer satisfaction and identifying potential churn at scale has always been a complex challenge,” said Sander Bonk, managing partner at Volta Ventures.
“With Churned’s AI-powered platform, businesses can now more effectively address pain points, drive customer satisfaction and directly impact their bottom line. We’re excited to support Churned on this journey.”
Scalable Retention Marketing and Customer Success
According to a statement from Churned, the subscription economy relies on retaining customers and growing revenue through upselling, but companies struggle with massive amounts of customer data and inefficient tools to predict churn or identify upselling opportunities.
Existing solutions that rely on expensive consulting or generic software fail to effectively leverage data-driven decision making. Churned solves this challenge with an AI-based platform.
Churned uses AI-based predictive models to identify at-risk customers and up-selling opportunities, helping subscription businesses increase customer retention and maximize revenue.
The company’s prescriptive model recommends specific actions to retain customers and increase lifetime value, and automates processes for optimal efficiency. The company claims its platform allows businesses to target the right customers with the right message, through the right channel, at the right time, all at scale.
“Many existing approaches are either too slow, too expensive, or require extensive manual input,” says Michiel Doornenbal, co-founder of Churned. “Humans are great at connecting with customers, but analyzing massive data sets and predicting behavior is where machine learning really shines.”
“Our AI-powered platform does the heavy lifting, making customer success more cost-effective and efficient, freeing up customer success teams to focus on building meaningful relationships with their customers.”
Capital Utilization
The funding will help Churned build out its AI capabilities and expand its market reach. The company aims to transform retention marketing and customer success for subscription businesses around the world.
Patrick Pollock, Managing Partner at Newion, said: “We are impressed with Churned’s technology that replaces rules-based customer success systems with AI. Their specific focus on high-volume, low-margin subscription businesses helps drive customer loyalty and reduce churn. This funding round will allow Churned to further accelerate its impressive growth.”