DirectScale, which provides a cloud-based platform to meet the needs of the direct and social sales industry, has closed an $8.5m Series B funding round.
Grotech Ventures led the company latest financing round with participation from Origin Ventures and existing investor, Kickstart Seed Fund.? DirectScale launched its software platform in 2015, following the closing of its $4m Series A round from Kickstart Seed Fund and NetSuite.
Based in Lindon, Utah, the company is a cloud-based software platform purpose-built to serve the $250bn direct and social selling industry, which has previously been underserved by technology. Its platform provides communication solutions to keep teams connected, ecommerce tools to promote and drive new sales and enrolments, and actionable business reports to track commissions and KPIs.
DirectScale currently has more than three million active users and since launching their new management platform, has seen a 55% increase in new leads per month. As a result, its revenue is growing well in excess of 100% annually according to the business. It will use the capital to expand sales, marketing and product development to continue their rapid growth.
Lawson DeVries, general partner at Grotech Ventures, said: “DirectScale is experiencing tremendous growth as they bring much needed technology to the massive direct selling market a market that has traditionally been very poorly served from the standpoint of technology. With powerful software, a great team and the direct selling market enjoying impressive growth on the back of social media, DirectScale is in the right place at the right time. We’re excited to partner with them for their next phase of growth.”
Grotech Venture previous investments in FinTech include accounting and intelligence platform Ceterus and Payzer, a mobile finance tool for workers in the field.
Back in June South Carolina-based Ceterus completed a $6m Series A extension investment, which was led by Grotech. Others that contributed to the funding round included existing investors TechOperators, The IDEA Fund, and Alerion Ventures. Last year, Payzer raised $4.25m in a Series B round of equity capital. The funding for the Charlotte-based company came from Route 66 Ventures, Grotech and IDEA Fund Partners.
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