Postal.io Raises $9M from Series A Round of Financing led by Mayfield

By: Retail CIO Outlook | Monday, May 11, 2020

The new direct mail platform for marketing and sales teams receives funding to boost its onboarding process

Fremont, CA: After breaking its stealth mode, Postal.io raised $9 million from its Series A round of financing to launch the new direct mail platform for marketing and sales teams. The round was led by a Calfornia-based, first-time investor, Mayfield.

The deal also included Rajeev Batra, partner at Mayfield, to join Postal.io’s Board of Directors.

Postal.io assists businesses to scale direct mail workflows for sales and marketing; it empowers companies to cut down on online marketing clutter while improving offline conversion rates with automated direct mail, charitable giving, and corporate gifting.

“The benefit of making sales and marketing digital is to operate with empathy for users, and Erik and Jed are taking this a step further,” said Batra referring to company co-founders Erik Kostelnik and Jed Danner.

“They are bringing the benefit of digital to the offline side, which had not been done on the business-to-business side, and making it scalable and deeply personal. They are closing the empathy loop.”

Even though it is the company’s first investment, the co-founders are well versed in the field. Mayfield is Kostelnik’s fourth startup, before which he and Danner founded TextRecruit, which connected employers to job seekers. After these moves, Kostelnik and the co-founders moved to San Luis Obispo to start Mayfield, which funded Postal.io to save half of the costs and recruit top talent.

Since most employees are working from home due to the COVID-19 pandemic outbreak, the need for solutions such as the Postal.io is seemingly urgent. The company focuses on email marketing, which is continuously losing the rate of returns at present. But, it is set to have a great demand that will drive its popularity in the post-pandemic period, while response rates stay at near or all-time lows.

“We hope to build a $1 billion business here,” he said. “Our vision is to establish a new revenue source for local vendors to create a physical connection because they don’t have the foot traffic right now.”