Regal.io Raises $38.5M in Series A Funding
We founded Regal.io in 2020 to help brands drive more conversations with consumers, and hit their growth goals way faster. It’s been fun to watch 100+ brands use our product in ways we never imagined to power 10M customer conversations and $500M in brand revenue to date.
Today we are excited to announce that based on the success our customers are seeing using Regal.io, we have raised $38.5 million in Series A funding led by Emergence Capital to continue to invest in our teams and products. A large part of our success is due to the fact that, until recently, Rebecca and I were our ideal customer profile – execs at a B2C online brand, looking for ways to increase conversion instead of having to spend more marketing dollars. Regal.io is the product we wished we’d had.
The Origin of Regal.io
While helping scale Handy.com and then Angi (NASDAQ: ANGI), the largest home services company in the world, we had an idea.
Our teams consistently found that despite the easy to use website and apps we’d built, the online conversion rates for our services – like fence installation – were lower than traditional offline service providers, and no one understood why. After reviewing millions of recent customer experiences in search of a solution, we realized that we were abandoning over 90% of the users who didn’t convert via self-serve by not engaging them in a conversation.
Our teams knew that if a consumer didn’t convert via self-serve, having a conversation with them massively increased conversion. However, lacking an effective tool to engage customers in conversations, we resorted to using traditional omnichannel cloud contact center software. Despite our sophisticated use of branding, personalization, A/B testing, and AI in other remarketing channels like email and direct mail, the traditional omnichannel cloud contact centers only let us use a basic, one-size-fits-all “call more” or “call faster” strategy. We’d upload a list of leads and “dial for dollars” from an unknown number. The results we observed were: being flagged as spam, low reach rates, lost customers, and little data about which call strategies were working and which weren’t.
We founded Regal.io because we realized that a real-time, event-driven marketing automation system connected to conversational channels like phone instead of one-way marketing channels like email could help solve the problem. It would allow brands to programmatically reach the right customer at key moments, and have the right conversation to convert them. We set out to build a new technology stack for phone sales on these product principles:
- A real-time, event-driven system to trigger calls and texts off of relevant online customer behaviors;
- SMS conversations from the same ‘long’ phone number as calls so customers can engage in their preferred channel;
- Branded calls and texts to cell phones so customers always know who is trying to reach them;
- A real human salesperson from the brand, supported by intelligent recommendations from our software;
- Measurable (and optimizable) campaigns just like other digital channels; and
- Reliance on first party data (eg. product usage, conversational data, engagement in other marketing channels) not third party platforms to create an ‘owned’ channel.
Regal.io has transformed phone sales from a low engagement, relatively expensive channel to the highest engagement, and best performing remarketing channel for our customers.
We drive 25% more revenue from consumers than traditional omnichannel cloud contact center software because we were built from the ground up to enable brands to treat customers like royalty, not just another (phone) number.
Our average answer rate on outbound is an amazing 36% – 10x average email click rates, and 3.6x traditional outbound phone answer rates. We power over 1M connected conversations a month, which drive over $50M in revenue per month for brands. And we have attracted an amazing team of 80 believers, including a fantastic executive team:
- VP, Sales Brandon Goldman, formerly from SurveyMonkey
- VP, Customer Success Michael Redbord, formerly from Hubspot
- VP, People Devon Siegel, formerly from Reonomy
- VP, Engineering E.J. Bensing, formerly from Mark43
- VP, RevOps John Marcus, formerly from Digital.ai
- CMO Lisa Kalscheur, formerly from Notarize
We’re positioning Regal.io to be a category defining company that has enormous long-term impact on how brands engage with customers. And we aim to attract the best talent across sales, marketing, product, and engineering to join us – I absolutely love the team we have built so far, and I am thankful every day to be able to go on this journey with my amazing co-founder.
A big thank you to everyone who helped us get here. We look forward to continuing to work with you. And if you are new, we look forward to seeing how you use Regal.io to make phone sales your competitive advantage.