But losses mount for the home furnishings e-retailer that went public in October.
Digby will use the funds to improve its m-commerce offerings for retailers.
Digby, which hosts technology on the Internet that runs mobile web sites and apps for retailers, has received $8 million in Series C venture capital from investors led by Battery Ventures.
David Sikora, president and CEO of Digby, says the funding will “support our deep investment in the retail channel and provide our retail partners with the best mobile experience in the industry.”
Digby’s mobile software technology suite, offered in a software-as-a-service environment to more than 45 retailers, covers mobile web sites, mobile apps for BlackBerry, iPhone, iPad and Android devices, and in-store applications such as for price-checking and two-dimensional bar code scanning. Its clients include Toys ‘R’ Us Inc., Costco Wholesale Corp., The Home Depot Inc., Godiva Chocolatier Inc., The Orvis Co. Inc., Golfsmith International Holdings Inc. and 1-800-Flowers.com Inc.
The new funding is also backed by BlackBerry Partners Fund, S3 Ventures and Daylight Partners. The funding follows an announcement earlier this month that Digby and wireless carrier AT&T will offer mobile commerce technology to AT&T’s retailer clients. AT&T is re-selling the Digby Mobile Commerce platform to retailers to support their design, deployment and management of mobile commerce sites and apps.
“By adding Digby Mobile Commerce Solutions to our portfolio of mobile marketing solutions, we’re able to offer retailers a comprehensive set of services for promoting, merchandising and selling product through a mobile channel,” says Chris Hill, vice president, Advanced Mobility Solutions, AT&T Business Solutions.
S3 Ventures says that Digby has staked out a leadership position in mobile commerce.
“We have been a big supporter of Digby since our investment in 2008 and believe that the recently announced AT&T relationship shows that Digby is the leader in mobile commerce for retailers,” says Brian Smith, managing director at S3 Ventures. “We believe this financing and AT&T relationship further accelerates Digby’s opportunity and broadens its appeal to retailers worldwide.”
Michael Brown, general partner at Battery Ventures who recently joined the Digby board, says Digby is positioned for strong growth serving the retail industry. “Digby is best positioned of all of the companies we’ve seen to help top retail brands succeed in the mobile channel, and we really believe in their SaaS delivery model,” he says.
In 2008 Digby received $5.5 million in Series B funding from BlackBerry Partners Fund and other investors. “Digby was one of the first companies we invested in when we started the BlackBerry Partners Fund in 2008, and we are thrilled to see how they have grown to become the market leader in enabling the mobile channel for top retail brands,” says Pierre Donaldson, partner, BlackBerry Partners Fund. Blackberry Partners Fund was established by Research In Motion, the company that developed the Blackberry mobile phone, and such investors as Thomson Reuters and Royal Bank of Canada, to invest in mobile technology companies.
Digby also announced that Mike Dansby, a software industry veteran and former managing director of Alvarez and Marsal Business Consulting, is joining Digby as chief financial officer.
Toys ‘R’ Us is No. 37 in the Internet Retailer Top 500 Guide; Costco is No. 15; Home Depot, No. 39; 1-800-Flowers.com, No. 40; Orvis, No. 124; and Golfsmith, No. 242.