New York and Tel Aviv co-headquartered startup Yotpo has bagged US$ 75M in a Series E funding round held in August 2020, from Bessemer Venture Partners, Access Industries, Vertex Ventures and new investor Hanaco.
Yotpo is an eCommerce marketing platform that offers services like SMS and visual marketing, loyalty, referral services, reviews, and ratings to eCommerce companies. Tomer Tagrin and Omri Cohen started Yotpo in the year 2011.
It has been built as a freemium platform, with around 9K users paying for services and a further 280K users on its free-usage stage. They have integrated their platform with online business tools to generate and maximize the power of user-generated content for leading eCommerce platforms and Apps like Klaviyo, Magento, Shopify, Shopify Plus, Facebook, AdRoll, Amasty, Antavo, Google, Instagram among many others. They are on a mission to empower brands to grow their direct-to-consumer business through appealing experiences that help sustain lasting customer loyalty. The startup claims its customer sum grew by 250% in the last year.
The company started its journey as an App in Shopify’s App Store, providing tools to Shopify customers to help with customer engagement by way of user-generated content, and while it has expanded that single relationship, it now has some 500 additional strategic partners as mentioned above.
Tagrin said, “Just as Shopify manages your business, we manage your customers end to end.” He further said that while he feels great to see the bigger trend of unification around marketing clouds, it’s not a one-size-fits-all problem. He has faith in Yotpo’s e-commerce-focused approach that stands apart from the crowd because it addresses problems exclusive to D2C and other eCommerce companies. The Coronavirus pandemic has had an immense impact on the internet usage of people since its inception, and eCommerce, especially as people, turned towards digitized modes of shopping in order to ensure social distancing and obeying with shelter-in-place orders.
This has benefited Yotpo directly as it claimed it had an outpouring of registrations of new customers, many taking paid services, working out to a 170% year-on-year Annual Recurring Revenue(ARR) and lower customer churn. The recent funding brings Yotpo’s total to US$ 176M which it has secured in 8 investment rounds from 2011-2020.
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