Yotpo, a leading eCommerce and content marketing platform that helps retail brands generate online revenue growth, announced the closure of a $230 million Series F funding round on Thursday, at a valuation of $1.4 billion. The round was led by Bessemer Venture Partners BVP), an existing investor, and NY-based fund Tiger Global.
Existing investors Claltech Investment, Coin Ventures, Hanaco, Vertex Ventures, and Vintage Investment Partners, also participated in the round.
Founded in 2011, Yotpo works with brands such as Patagonia, Steve Madden, and GoPro 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).
The company says it has crossed the $100 million annual recurring revenue (ARR) threshold and now serves over 30,000 eCommerce customers. The number of tech integrations with Yotpo products grew 40 percent year-over-year in 2020, the company said.
“We have always believed that eCommerce would become the dominant form of shopping, but 2020 was an incredible acceleration,” said Yotpo co-founder and CEO Tomer Tagrin.” The eCommerce arena is the most important place to be. Everyone is selling everything online now, from entrepreneurs setting up shop in their basement to some of the largest brands in the world. But this also means it’s only going to get more difficult, expensive, and inefficient to market to customers.”
The company said in a statement that it will use the funding to double its product and R&D team, accelerate the rollout of its full platform experience, and further connect its products, which to date include Yotpo SMS Marketing, Yotpo Loyalty & Referrals, Yotpo Reviews, and Yotpo Visual UGC.
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This connected suite of solutions unlocks unified customer data that will allow brands to get more from every campaign and maximize their ROI, Yotpo said.
“On top of having to come up with creative ways to stand out in a competitive and noisy space, eCommerce teams are bogged down by managing so many marketing point solutions,” added Tagrin. “Those solutions, with siloed customer data, force marketers to work harder and definitely not smarter.”
By integrating Yotpo’s products and consolidating customer data into one eCommerce marketing platform, “brands will get to know their customers on a deeper level, give them edgy, VIP experiences every time, and get a higher ROI for their marketing efforts,” he went on.
“The past twelve months, we’ve seen impressive growth from companies who were smartly positioned in eCommerce. Yotpo is no different and belongs up there with the biggest players in the space — Shopify, Affirm, BigCommerce,” said Adam Fisher, Partner at Bessemer. “As a long-time investor, it’s great to see Yotpo’s big bets pay off, and the success so many brands have seen using Yotpo’s growing suite of solutions.”
“Tiger Global has long been bullish on eCommerce as the future of retail, having invested in disruptor brands like Warby Parker and Peloton, giants like JD.com, and best-in-class SaaS companies like Stripe and Twilio,” said John Curtius, Partner at Tiger Global. “We are excited by Yotpo’s approach to provide a unified marketing tech stack and the value it provides to brands and online shoppers in the process.”