QR code tech start-up Beaconstac has raised a $25 million Series A funding round led by Telescope Partners. Accel India also participated in the investment round.
The New York and Bengaluru-based startup will use the new capital towards expanding the startup’s team and product research and development said co-founder and chief executive officer (CEO) Sharat Potharaju.
The start-up was founded in 2019 by Potharaju and Ravi Pratap Maddimsetty. Potharaju is an investment banker by trade and has worked at Merrill Lynch and Fieldstone Private Capital Group. Maddimsetty, a software engineer, was an IT associate at Morgan Stanley and contributed to open-source Linux projects, including the GNOME desktop environment.
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The start-up helps businesses to create and track QR codes, which enable consumers to have a user-friendly solution for contactless experiences. It also offers modification aspects of branded QR codes including the shape, captions and background colors to match companies' design languages.
“We see more businesses continuing to adopt this technology because it streamlines the customer experience. The pandemic has only amplified the existing need to connect the physical and digital worlds better,” said Potharaju in a media statement.
The company claimed that it is operating with a gross margin of 85 per cent and grew revenue by 300 per cent from 2020 to 2022, and 200 per cent from 2021 to 2022.
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Arguably an infringement on people's privacy, Beaconstac also allows companies to create QR codes that track engagement, like a customer’s location at the time of a scan. Potharaju argues that it’s helping companies acquire first-party data at a time when more platforms are becoming averse to tracking.
“Beaconstac’s platform does not collect any personally identifiable information when a QR code is scanned, we are compliant with GDPR regulations around security and privacy,” he said, adding that “Consumers can always request data deletion under GDPR rules.”
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