Qsic, an Australia-based AI-powered audio platform, has successfully secured USD $25 million in a Series B funding round, aimed at expanding its operations and entering new markets within the retail industry.
The investment round, led by Hedosophia, will facilitate Qsic's plans to enhance its AI capabilities designed specifically for the creation and measurement of audio advertisements, as well as advanced audience targeting techniques. The company's in-store audio solutions are already utilised by major retailers and quick-service restaurants, such as 7-Eleven, Coles Express, and McDonald's, reaching over 100 million shoppers monthly at the point of purchase.
The funding will support the expansion of Qsic's platform into new retail locations, further the development of its products, and allow for the scaling of its sales team. Additionally, over 70,000 speakers are expected to be deployed across North America over the next year.
Matt Elsley, Co-founder and Chief Executive Officer at Qsic, said, "Retailers that have deployed our tech are seeing sales lifts average up to 14%, and we've barely scratched the surface with our technology capabilities. The demand for our solution is strong. Now, we're positioned to accelerate product development to enhance our tech capabilities and put new resources in place to grow our network to drive even greater, measurable outcomes for our retail partners and brands globally."
While most of the growth in retail media has been online, a significant portion of shopping—85%—still occurs in physical stores. However, in-store media has encountered adoption barriers, including high costs, measurement difficulties, and scaling issues. Qsic's proprietary intelligent audio solutions aim to address these challenges by offering a simple setup with advanced measurement and automated planning tools that lower the barrier of entry.
To enable scale and customisation, Qsic has introduced "Lucy," a proprietary AI model designed to create custom audio advertisement content, including real-time, on-demand voiceovers. Lucy uses retailer data to tailor ad content to local conditions, such as pricing and weather, to better engage customers. Qsic exceeds IAB standards by adjusting audio volume based on the surrounding noise levels to ensure ads are clearly heard and timestamps each ad for compliance validation.
Qsic recently revealed a major partnership with convenience store chain 7-Eleven to launch "Gulp Radio" in more than 5,000 stores in the United States by the end of 2024, with full deployment in 12,000 stores anticipated by the end of 2025. This rollout, which includes all 7-Eleven, Speedway, and Stripes locations nationwide, is expected to make "Gulp Radio" one of North America's largest commercial radio networks, giving advertisers access to 13 million daily shoppers at the convenience chain.
The company's client base spans various sectors, including fuel and convenience, grocery, liquor, hospitality, fashion, and specialty retail industries. Through its advanced audio solutions, Qsic assists retailers in activating their Retail Media Networks by handling everything from music curation to ad sales.
