Yotpo raises $75M in Series E funding to become a single platform for all eCommerce marketing
We last wrote about Yotpo back in January after the New York City-based eCommerce marketing platform acquired SaaS startup SMSBump. The mobile commerce market has seen explosive growth in recent years. Thanks in part to smart devices that are making it easier for people to shop. More people are also shopping online due to the ongoing coronavirus pandemic lockdown. Yotpo, one of the leading startups in this space, helps retail brands accelerate online revenue growth with its eCommerce marketing platform.
Today, Yotpo announced it has raised $75 million in Series E funding to fuel marketing innovation and expand operations. The round, which brings the company total funding to $176 million, was led by Adam Fisher, Bessemer Venture Partners (BVP).
Founded in 2011 by Omri Cohen and Tomer Tagrin, Yotpo provides brands with everything they need to win in a customer-centric world. Yotpo’s suite of integrated solutions for user-generated content marketing, loyalty, and referrals helps commerce companies accelerate growth by enabling advocacy and maximizing customer lifetime value.
Yotpo has experienced record growth with a 300% increase in customers in 2019 and a 250% increase in annual recurring revenue (ARR) since its last raise in November 2017. The company expects to double its revenue within the next two years.
During the early months of COVID-19, Yotpo saw an explosion of sign-ups to help achieve 170% YoY net new ARR, as well as record lows in customer churn. With eCommerce sales projected by eMarketer to reach $859.28 billion by 2022 (a 43% climb vs. 2019), brands have a pressing opportunity to reorient their businesses to meet the surging customer demand for digital commerce.
According to the company, the latest round will be used to advance its mission to create an industry-defining eCommerce marketing platform, with an integrated product set of Reviews, Visual User Generated Content (UGC), Loyalty, Referrals, and SMS Marketing, that helps brands of all sizes accelerate growth and drive customer lifetime value in an increasingly competitive arena.
“In the Covid era, every business is an eCommerce business,” says Tomer Tagrin, Co-founder and CEO of Yotpo. “Our vision is to equip businesses of every size, across every industry, with the best possible technology to efficiently achieve maximum growth. To that end we are building a single, fully integrated platform that empowers businesses to create exceptional, customer-first commerce experiences.”
Yotpo said the key to delivering these experiences is for eCommerce marketers to have a reliable, single source of truth that provides the critical insights necessary to be competitive in today’s retail climate. Yotpo’s integrated, multi-solution platform provides marketers with unified customer content, cross-product behavior data, deeper audience segmentation, and predictive analytics. This invaluable “snapshot” into how customers are engaging across different marketing touchpoints enables brands to unlock incremental revenue opportunities that would otherwise be missed.