Customer experience unicorn Medallia acquires Kampyle to embed feedback capability into apps

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Silicon Valley unicorn startup Medallia has made what appears to be its first acquisition, the company announced Thursday morning with the buyout of Israeli digital feedback startup Kampyle (pronounced “compile”). Terms of the deal were not disclosed, but it was let known Kampyle will be rebranded as Medallia Digital.

In a press release, Kampyle CEO Ori Soen asserted, “Digital customer experience is a market ripe for disruption. Companies simply cannot thrive today without a complete omnichannel view of their customers.”

Medallia is considered a leader in “customer experience management” and has $255 million in venture investments to back that assertion, including funding from Sequoia Capital. They last raised $150 million in a round last year at a $1 billion+ valuation.

Previous to this buyout, Medallia does not appear to have had a significant focus on mobile, or so-called “digital experience management” (a.k.a. Voice of Customer – VOC). That is where Kampyle comes in, bringing their magic in on big data analysis of customer feedback.

“Combining forces with Medallia creates an unparalleled solution. Over the last year, we started winning joint customers with Medallia, and we’re only seeing the demand accelerate,” Soen added, alluding to collaboration the two companies have been doing in the lead-up to this deal.

Kampyle’s big advantage is its focus on mobile apps, where its feedback tool can be added via a simple snippet of code according to Carmel Ventures General Partner Ronen Nir.

“They didn’t have their own digital solution. They were working with Kampyle as a partner to complement the product offering,” Nir told Geektime.

Now Medallia has gone all in with plans to convert their new property not into an R&D division as is so common with acquired Israeli startups, but a full-fledged business division in its own right. Expectations are Medallia Digital will double its employee numbers by this time next year.

Carmel Ventures General Partner Ronen Nir (courtesy)
Carmel Ventures General Partner Ronen Nir (courtesy)

Carmel has been the company’s primary investor for the last five years, having put about $4 million into the company. They helped oversee a transition from the original founders to Soen a couple years ago. Soen, who brought experience as General Manager at B2B communications platform Jajah and VP of Marketing at MyHeritage, has shepherded the small enterprise through its pivot to a mobile strategy.

Competition in this space isn’t scarce by any means. SSM Partners-backed OpinionLab, Answers-acquired ForeSee Results, and iPerceptions are also battling for market share. Kampyle’s super hero-esq team up with Medallia suddenly makes them the big player in the game.

When asked why someone would want to spend the extra money for a service like Kampyle’s Ronen says that the basic online survey providers have not built themselves to deal with big data.

“SurveyMoney is a survey tool, not a feedback tool. The market differentiates between those. You can’t put a small button embedded into your mobile app to collect this information,” he explains, adding that Kampyle’s product can work with millions of surveys as opposed to the few hundred or few thousand a generic survey service could.

Kampyle maintains offices in Tel Aviv and Palo Alto. They claim some 50 enterprise clients spread across the US, Europe and Australia. Besides Tel Aviv and Silicon Valley, Medallia has locations in New York, London, Paris, Hong Kong, Sydney, and Buenos Aires.

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