NEW YORK, March 18, 2021 /PRNewswire/ — Yotpo today announced that it has raised $230 million in Series F funding. With its largest investment round yet, Yotpo aims to lay the groundwork for its all-in-one e-commerce marketing platform, designed to give brands an unparalleled ability to stand out. and retain customers in the hyper-competitive world of e-commerce.
“We always thought e-commerce would become the dominant form of shopping, but 2020 has been an incredible acceleration. The e-commerce arena is where it matters most. Everyone sells everything online now, entrepreneurs who move into their basements to some of the biggest brands in the world. But it also means it will only become more difficult, expensive and inefficient to market to customers,” said Tomer TagrineCEO and Co-Founder, Yotpo.
It’s time for an evolved e-commerce experience
“In addition to having to find creative ways to stand out in a noisy, competitive space, e-commerce teams are bogged down managing so many marketing point solutions,” says Tagrin. “These solutions, with siled customer data, force marketers to work harder and certainly not smarter. As a result, experiences lag and their customers drift away.”
Tagrin continues, “By integrating our products and consolidating customer data into a single e-commerce marketing platform, brands will get to know their customers on a deeper level, deliver cutting-edge experiences every time and VIP and will get a higher return on investment for their marketing efforts. Thank you. Thanks to the incredible support of our investors and the passionate efforts of the Yotpo team, the full release of our multi-product synergistic platform is fast approaching.”
More Than the Sum of Its Parts – Imagine What Yotpo’s Platform Will Do
With the latest fundraising, Yotpo plans to double its product and R&D team to accelerate the rollout of its full platform experience, doing the behind-the-scenes work of connecting its products – which to date include SMS Marketing Yotpo, Yotpo Loyalty and Referrals, Yotpo Reviewsand Yotpo visual UGC. This suite of connected solutions unleashes unified customer data that will enable brands to get the most out of every campaign and maximize their return on investment.
Founded in Australia in 2010, Princess Polly is one of the fastest growing brands in the US market serving women between the ages of 16 and 25. The brand uses the entire Yotpo platform suite. “Our biggest challenge was having so many different marketing tools, vendors, and programs, and none of them talking to each other. Yotpo’s approach to integrated products on one platform solved this problem for us,” said Kim ZornPerformance Manager, Princess Polly. “With Yotpo, we can text review requests, reward loyalty points for reviews, ask 5-star reviewers for referrals, send specific texts to loyal members, and much more. Yotpo form makes it much easier to give our customers the absolute best experience with our brand – it has brought our e-commerce dreams to life!”
VICI is a California-a fashion brand based on growing at a blistering pace, and the cult favorite is also using several Yotpo solutions to accelerate that growth. “We can create more connected and engaging experiences every step of the way, and engage our customers in a much more personal and effective way. We’re excited to unlock the full potential of Yotpo’s platform,” said Aimee Dudum ColoradoDirector of Merchandising and Marketing, VICI.
Product synergies on the Yotpo platform show the power of using deeply integrated marketing tools to generate more impact. Brands using two or more Yotpo products grew 54% faster than those using just one.
Valuation, Participation & Partners
The latest investment round puts Yotpo’s valuation at $1.4 billion, thanks in part to the company’s strong performance and steady growth. Yotpo crossed the $100 million annual recurring revenue (ARR) threshold after seeing a massive acceleration in most business metrics. This is due to the demand for our products, especially Yotpo Loyalty, which nearly doubled last year, and Yotpo SMS Marketing, which grew by 170%. Yotpo now serves over 30,000 customers who represent the best in e-commerce, including Patagonia, Revolution Beauty, Brooklinen, Steve Madden and Princess Polly.
Led by Bessemer Venture Partners and Tiger Global, the funding round saw participation from existing investors Claltech Investment, Coin Ventures, Hanaco, Vertex Ventures, Vintage Investment Partners, among others.
“Tiger Global has long been bullish on e-commerce as the future of retail, having invested in disruptive brands such as Warby Parker and Peloton, giants like JD.com, and blue-chip SaaS companies like Stripe and Twilio. We are excited about Yotpo’s approach to delivering a unified marketing technology stack and the value it delivers to brands and online shoppers in the process,” said John CurtiusPartner at Tiger Global.
To provide brands with top-notch support, strategy, and enablement, Yotpo has partnered with over 500 leading agencies, platforms, and technologies that power e-commerce stores. Yotpo will invest in deepening alliances with current and future partners, as well as expanding technology stack integrations, so that any brand can connect to Yotpo easily and seamlessly. The number of technology integrations with Yotpo products increased by 40% year over year in 2020.
“Over the past twelve months, we’ve seen impressive growth from companies that were smartly positioned in e-commerce. Yotpo is no different and is owned by the biggest players in the industry – Shopify, Affirm, BigCommerce” , said Adam Fisher, Partner at Bessemer. “As a long-time investor, it’s great to see Yotpo’s big bets paying off, and the success so many brands have experienced using Yotpo’s growing suite of solutions.”
Yotpo, the leading e-commerce marketing platform, helps forward-thinking brands like Patagonia, Steve Madden, Free body, Helly Hansen, Brooklinen and GoPro are accelerating direct-to-consumer growth. Yotpo’s single-platform approach integrates data-driven solutions for loyalty, SMS marketing, reviews, and more, enabling brands to create smarter, higher-converting experiences that engage and nurture customer relations. Yotpo integrates with the tools online businesses use every day, including Google and Instagram, and is available on all major e-commerce platforms, including Shopify, Salesforce Commerce Cloud, Magento (An Adobe Company), and BigCommerce. Yotpo is a Forbes Cloud 100 company with offices around the world, including New York, London, Israeland Bulgaria. Yotpo is hiring! Visit yotpo.com/jobs.
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