Kenect, a provider of business texting and communications technology, has secured a strategic growth investment from funds advised by PSG, a growth equity firm partnering with middle-market software and technology-enabled service companies.
The investment aims to fuel Kenect’s next phase of growth including: Continued product innovation, scaling the go-to-market, adding to the customer support organisation and pursuing strategic acquisitions, all in order to better serve Kenect’s growing list of clients across North America.
Financial terms have not been disclosed.
“We couldn’t be more excited to work with PSG to continue our mission of connecting businesses with consumers through our messaging platform,” says Shaun Sorensen, Co-Founder and CEO of Kenect. “Businesses are looking for better ways to improve their customer experience, communicate more efficiently, collect payments via text message and more. We believe we are uniquely positioned to provide an innovative solution for this new era of local business.”
Since its founding in 2017, Kenect has grown its cloud-based, two-way text messaging platform to support customer communications, customer experience, lead generation, reputation management and payments for thousands of customers across multiple industries.
Kenect allows companies to use their business phone number to send and receive text messages from any device. Text messaging is ubiquitous, and now it’s becoming a way that customers want to communicate with businesses. 98 per cent of text messages are opened and most customers say phone calls from businesses are disruptive. Kenect’s message is simple: Your customers want to text you, let them.
“We look forward to working with Kenect’s experienced management team who, in our view, has done a tremendous job rapidly growing Kenect through a differentiated, vertically-focused approach,” says Rick Essex, Managing Director at PSG. “We believe the Kenect team has developed a strong, highly scalable software platform and is well-positioned to address the extensive market opportunity as adoption of text communication with customers in the small and medium sized business community continues to grow.”
Arbor Advisors acted as financial advisor and DLA Piper served as legal advisor to Kenect. Weil, Gotshal & Manges LLP served as legal advisor to PSG.