Fero Secures Funding to Enhance Checkout Experiences and Reduce Abandonment Rates
Fintech startup Fero has raised a significant amount of funding led by Antler, Volta Ventures, and Coatue. The company plans to use the funds to expand its team in the US and Europe and improve its product offerings for retailers.
Fero specializes in providing customized checkout experiences and payment journeys to individual customers, with the aim of increasing conversion rates and reducing fraud. The company’s co-founder and CEO, Craig Savage, expressed his surprise at the high level of cart abandonment during the checkout and payment process. He noted that over 45% of customers leave items in their shopping carts without completing the purchase, resulting in more than $5.2 trillion of lost revenue annually.
Fero was founded by Savage and chief operating officer Maximilian van Boxel, who previously worked together at Ekata, a global payments solution acquired by Mastercard in 2021. The team’s goal in establishing Fero was to help retailers provide a more seamless and personalized shopping experience for their customers.
According to Fero, merchants currently lose out on $5 trillion of revenue each year at the point of checkout. The company aims to address this issue by leveraging behavior analytics to understand why items are left unpurchased in online shopping carts. By analyzing each shopper’s behavior and activity, Fero can predict the likelihood of purchase completion and optimize the payment experience accordingly. This includes offering customized payment methods and minimizing authentication challenges.
The funding received by Fero will be used to expand the company’s presence across Europe and the US, enabling more retailers to benefit from its innovative payment solutions. Coatue partner Elena Sakach praised Fero’s unique approach, which focuses on understanding shopper behavior to deliver effective purchase solutions and drive revenue for retailers.
