Home Entrepreneurs Beaconstac lands $25M investment for its QR code management platform • TechCrunch

Beaconstac lands $25M investment for its QR code management platform • TechCrunch

by Ozva Admin
Beaconstac lands $25M investment for its QR code management platform • TechCrunch

QR code technology, which exploded during the pandemic as businesses sought hygienic alternatives to physical touch points, continues to grow in popularity, particularly in sectors like restaurants and retail stores. According to according to Insider Intelligence, more than 99.5 million smartphone users will scan a QR code by 2025, up from 83.4 million in 2022. There is a potential downside: some argue QR codes reduce the need to hire employees to collect payments and serve customers, but it seems clear that technology, for better or worse, is not going anywhere.

That has benefited start-ups like beaconstac, which works with companies like United Airlines, Amazon and Deloitte, to create QR code experiences for the end customer. In a sign of how bullish the business has been, Beaconstac announced today that it has closed a $25 million Series A funding round led by Telescope Partners with participation from Accel.

Co-founder and CEO Sharat Potharaju says the new capital will go toward expanding the startup’s team and product research and development.

beaconstac

Image Credits: beaconstac

“We have seen tremendous growth since the start of the pandemic because our QR code technology offers businesses an efficient and easy-to-use solution for creating contactless experiences,” Potharaju told TechCrunch in an email interview. “We see more companies continue to adopt this technology because it streamlines the customer experience. The pandemic has only amplified the existing need to better connect the physical and digital worlds.”

Potharaju co-founded Beaconstac in 2019 with Ravi Maddimsetty. Potharaju is an investment banker by trade, having held positions at Merrill Lynch and Fieldstone Private Capital Group. Maddimsetty, a software engineer, was an IT Associate at Morgan Stanley and contributed to Linux open source projects, including the GNOME desktop environment.

With Beaconstac, Potharaju and Maddimsetty sought to ride the wave of QR code adoption, creating a platform that allows businesses to create, manage, and track QR codes across multiple physical touch points. With Beaconstac, businesses can modify aspects of branded QR codes, including shape, captions, and background colors to match their design languages.

Beaconstac also allows companies to create QR codes that track engagement, such as a customer’s location at the time of a scan. While it’s likely not a feature that all users are comfortable with, Potharaju argues that it’s helping businesses acquire proprietary data at a time when more platforms (see apple) are becoming averse to tracking. (Whether you agree with Potharaju depends on which side of the privacy debate you’re on, of course.)

“Beaconstac’s platform does not collect any personally identifiable information when a QR code is scanned; we comply with GDPR regulations on security and privacy,” Potharaju said. “Consumers can always request data deletion under GDPR rules.”

Although Beaconstac competes with vendors including Flowcode and Bit.ly, the company claims to have more than 20,000 customers, twice as many as last year. Potharaju declined to share revenue figures but said Beaconstac, which has offices in the US and India, plans to double its workforce of 75 sometime this year.

“In 2019, my co-founder and I asked ourselves the question: ‘Our phones are great for connecting, but why aren’t they better for connecting with the physical world?’” Potharaju said. Beaconstac [is] helping companies… build digital cohorts based on interactions in the physical world.”

You may also like

Leave a Comment