Israeli Marketing Tech Company Yotpo Raises $75M
Yotpo, a leading eCommerce and content marketing platform that helps retail brands generate online revenue growth, announced the closure of a $75 million Series E funding round on Tuesday. The round was led by Bessemer Venture Partners (BVP) “in response to the company’s consistent growth and strong performance,” the VC firm said in a statement.
Existing investors Access industries and Vertex Ventures also participated in the round. Hanaco Venture Capital joined the round as a new investor.
Founded in 2011, Yotpo works with brands such as Patagonia, Steve Madden, and Thinx to collect customer-generated content including reviews, ratings, photos, and Q&A to build brand awareness, better customer experiences, and strong brand-customer relationships.
Yotpo’s platform provides marketers with a unique set of customer behavior data and predictive analytics, and integrates with other tools such as Shopify, and Salesforce. In recent years, Yotpo added loyalty, referrals, and SMS marketing to its offerings through a series of acquisitions (Swell Rewards in 2018 and SMSbump in 2020).
In 2019, Yotpo said it experienced a 300 percent increase in customers and a 250 percent increase in annual recurring revenue since its last investment round ($51 million) in November 2017. The spike in customer growth was attributed mainly to the COVID-19 pandemic which saw consumers shift further to online retail.
The latest funding round brings Yotpo’s total capital raised so far to $176 million and the company said it expects to double its revenue within the next two years.
“Marketers are managing too many tools that don’t communicate, which can lead to disjointed experiences for shoppers and lost sales opportunities,” said Tomer Tagrin, co-founder and CEO of Yotpo. “We have a vision to build an eCommerce marketing platform that fully integrates our products, giving brands a fuller view of how shoppers interact online, in stores, and with retail partners, and the power to create the exceptional commerce experiences their customers demand and deserve.”
“Yotpo’s singular focus on direct-to-consumer eCommerce companies and solving the dual challenge of engaging customers and increasing revenue is unique,” said Adam Fisher, a Partner at BVP. “With a multi-product strategy that leverages a common data infrastructure, Yotpo is positioned to dominate the eCommerce vertical for years to come.”
Yotpo has offices in Tel Aviv and New York.