DirectScale, a cloud-based software platform purpose-built to serve the $250 billion direct and social selling industry, today announced the close of an $8.5 million Series B funding round led by Grotech Ventures with participation from Origin Ventures and existing investor, Kickstart Seed Fund. DirectScale will use the capital to expand sales, marketing and product development to continue their rapid growth.
"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," said Lawson DeVries, General Partner at Grotech Ventures. "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."
As the only truly configurable, full-stack, SaaS (software-as-a-service) provider in the industry, DirectScale provides business leaders with the easy-to-use tools they need to effectively manage growth. The DirectScale platform focuses heavily on providing an intuitive user experience that works equally well on mobile or desktop and includes such things as communication solutions to keep teams connected, ecommerce tools to promote and drive new sales and enrollments, and actionable business reports to track commissions and KPIs.
DirectScale also offers clients a robust and comprehensive admin tool to configure and manage the back office portal for their sales force, ensuring the experience is appropriately custom-fit for every audience around the globe. And as a true SaaS platform, DirectScale offers clients the ability to extend functionality through third party integrations and customizations, meaning business needs and objectives won't be limited by the platform. Additional features include prospecting tools for new customers and team members, the ability to train new members through training modules and resource libraries, and tools to help sellers manage their social media.
"DirectScale is meeting the unique challenges of direct and social sharing companies head on," said Rodger Smith, CEO of DirectScale. "We're providing a desperately needed SaaS solution for the rapidly growing peer-to-peer social commerce space. This investment keeps DirectScale on the path to market dominance."
Direct and social selling is a massive $250 billion industry that has been underserved by technology and DirectScale's intuitive and simple platform has been received with enthusiasm. DirectScale currently has more than 3 million active users and since launching their new management platform, has seen a 55% increase in new leads per month a significant indication of the need for such a solution in an industry that employs more than 102 million people around the world.
As a result, DirectScale's revenue is growing well in excess of 100% annually, and this new funding will assist the rapidly growing company in scaling and responding to the high demand for the platform. The increased capital will help solidify DirectScale as a leader in the direct selling solution industry.
"DirectScale's software solution is the best we have seen," said Brad Christensen, CTO of Modere. "Their commitment to staying on the cutting edge gives us confidence that we will never have to worry that a competitor will have a superior product."
Based in Lindon, Utah, DirectScale is a software solution designed to seamlessly meet the needs of the direct and social sales industry. With a focus on intuitive user-experience, and a full suite of cloud-powered business management tools, they are committed to helping organizations drive and plan for growth. Their experience in software and marketing, from distributor to corporate, means they truly understand what it takes to succeed. To learn more, please visit www.directscale.com.
About Grotech Ventures
Founded in 1984, Grotech Ventures (http://www.grotech.com) is a leading early investor in high-potential technology companies. With more than $1.5B under management, Grotech seeks innovative, early-stage IT companies and continues to invest and add value throughout the growth of its portfolio companies. The firm has a strong combination of industry relationships and deep domain and operational expertise to accelerate growth. General partners include Frank Adams, Chuck Cullen, Lawson DeVries, Steve Fredrick, Don Rainey and Joe Zell. The firm has offices in Virginia, Maryland and Colorado.