Makeena
What they do: Makeena has developed a mobile app and online platform that helps natural product brands interact with health and lifestyle shoppers.
Problem they solve: Most of us would prefer to eat healthier foods and shop for sustainable products. However, those products can be difficult to find, tend to be overpriced, and are often confusing or misleading – i.e., what does “free range” really mean? Or what does “organic” actually mean, for that matter?
“In the U.S. and around the world, consumers are more aware than ever of how natural and organic brands can positively affect their health — whether because of a dietary condition like celiac. . . or because they are allergic to a cleaner that contains toxins, and they need to buy a product that doesn’t contain harmful chemicals,” said Karen Frame, Makeena’s co-founder and CEO.
Many consumers end up avoiding natural products because of the price point and the confusing labeling and standards.
This poses a problem for natural and organic brands. This market niche is already large and growing. The Nutrition Business Journal reports that U.S. natural products sales grew by 7.7% in 2016, reaching $195 billion.
#Big50-2017 #startup Makeena's mobile app connects natural product brands with health and lifestyle shoppers. Share on XYet, while sales are growing, natural product brands haven’t yet gained “true insight into where their products are purchased, who is purchasing them, for how much, or what encourages a shopper to make a repeat purchase.”
How they solve it: Makeena provides a data analytics and customer engagement platform for health- and lifestyle-related brands. Makeena’s mobile app offers savings and shopping info for consumers who purchase these types of products, while its online platform gives brands insights into the data that tells them where and why a consumer chooses their products, in-store or online.
Headquarters: Boulder, CO
CEO: Karen Frame. Frame was previously the in-house counsel for a data insights startup, “helping it grow its revenue from $20M to $80M less than three years.” She also previously served as General Counsel for an internationally-based SAAS company before it was sold to ABB Ventyx.
Year Founded: 2012
Funding: The startup closed a Seed I round in 2016 and is in the process of raising a Seed II round.
Competitors include: In May 2017, Makeena acquired its most direct competitor, Shrink the App. The startup also competes against the loyalty apps of the likes of Whole Foods and loyalty aggregation apps, such as KeyRing. Makeena also competes indirectly with Ibotta, which offers mobile cashback rebates, but it does not focus on health and wellness brands for now. The startup Honey has also entered this space, but for now it’s focused solely on online shopping.
Customers include: Lundberg Farms, Popcorners, Bhakti, Zevia, Sustain, Goddess Garden, Quinn Snacks, Beanitos, Glee Gum, and Enjoy Life.
Why they’re in the Big 50-2017: Makeena was a winner in the Big50-2017 content competition (you’ll hear more about that in coming weeks), finished high in the online voting competition, and has a long list of on-the-record customers.
While shopping/savings apps are popping up like weeds, we believe Makeena has carved out a viable, expanding, yet overlooked niche. According to Makeena, in 2016, natural brands spent more than $21B on marketing. “More than 80% of those dollars went to promotions and social media, where Makeena’s products and services live,” Frame said. With no other platform yet delivering granular consumer data to natural and organic brands, Makeena is positioned to grab a leadership role in this niche.
