Engage3 secures $25 million credit facility from Espresso Capital

Davis, Calif., — April 22, 2024 — Espresso Capital announced today that it has provided Engage3, an AI-powered SaaS platform that helps retailers and brands profitably grow revenue and drive store trips by tracking and optimizing their Price Image, with a $25 million credit facility. This expanded credit line will replace Engage3’s current credit line and supports the company as it continues to invest in several strategic growth initiatives, including additional enhancements to its Price Image Management Suite to address the increasingly important trade promotion optimization problem where almost three quarters of promotions fail to return a positive ROI.

“Partnering with Espresso enables us to pursue a number of important growth levers more aggressively,” says Engage3 CEO Edris Bemanian. “Together, we replaced an existing loan with a very patient, larger, and more flexible facility from Espresso that’s aligned to our strategy. This will enable us to continue to focus on expanding our total addressable market and to push the innovation envelope on our Price Image Management and Competitive Intelligence Management capabilities. We are also pursuing the huge opportunities that have opened up in the global shift to personalization, which has the potential to improve the ROI of hundreds of billions of dollars in trade spend.”

“Engage3 delivers comprehensive and real-time competitive product and pricing insights as well as Price Image measurement and optimization capabilities that are mission-critical for 300+ customers around the world,” says Espresso Capital Executive Director, Mark Gilbert. “The company has a fantastic leadership team, the backing of great investors, and a clear path to continuing its rapid expansion. We’re pleased to be partnering with them as they enter a very exciting stage of growth.”

“We’re very impressed with the Espresso team,” says Bemanian. “We always want to work with financing partners who are thoughtful and who take the time to really dig in and understand our business. Espresso has done that from day one and made it clear that they are a strategic partner, not just a transactional one. I think they are going to provide a lot of value and we look forward to working with them.”

“Engage3 has more than doubled in size since our Series D financing with significant growth ahead of it,” says Matthew Safaii, Managing Partner at Arrowroot Capital. “Securing a credit facility from Espresso means that the company has added another great partner to its roster of investors as they continue to accelerate their growth in both existing and new markets.”

Engage3 currently serves 8 of the top 10 retailers in the world and has been recognized as a price optimization industry leader by independent analysts, IDC and Quadrant Knowledge. The company was also recently recognized for the eighth consecutive year in Inc. Magazine’s list of fastest growing companies. In addition, Engage3 works with two of the Big Four accounting firms and 3 of the top 20 largest tech companies in the world to power their market insights and intelligence.

About Engage3

The price optimization pioneers behind KhiMetrics (acquired by SAP in 2006) created Engage3 to revolutionize how brands and retailers engage with their shoppers. Engage3 provides the industry’s most comprehensive omnichannel competitive intelligence solution, combining best-in-class AI-enabled web crawls, professional in-store audits, and self-serve in-store and online data collection into a single source of truth. Leveraging advanced algorithms and the Nobel Prize-winning Efficient Frontier theory, Engage3 helps retailers and brands track and optimize their Price Image to profitably accelerate revenue growth, drive incremental store trips, and increase margins. Engage3 serves over 300 customers in 182 countries, including 8 of the world’s top 10 retailers, and supports over $4 trillion in global retail revenue. Engage3’s leadership team comprises former executives from KhiMetrics, Mozenda, Dexi.io, SAP, Revionics, dunnhumby, KSS Retail, IBM/DemandTec, and Nielsen. Visit at http://www.engage3.com.

About Arrowroot Capital

Arrowroot Capital is a global growth equity firm based in Santa Monica, CA with offices also in Miami, FL, focused on minority, majority, and buyout investments in B2B software companies. The firm serves as a catalyst for growth-related initiatives by partnering with management and leveraging its deep enterprise software expertise to deliver meaningful, tangible value. Arrowroot targets initial equity investments in the range of $5 million to $50 million and has the flexibility to pursue larger opportunities as well as a broad range of transaction types. Arrowroot also assists in targeting and executing add-on acquisitions for its portfolio companies to help drive growth and increased market position. Learn more at www.arrowrootcapital.com.

About Espresso Capital

Espresso Capital has been empowering fast-growing technology companies with innovative venture debt solutions since 2009. During this period, we’ve funded over 330 companies in the U.S., Canada, and the U.K., helping to accelerate growth, extend runway, and increase strategic flexibility with non-dilutive capital. Espresso is headquartered in Toronto, with offices in San Francisco, Chicago, and London. To learn more about how you can use venture debt to grow your business, visit espressocapital.com.