Yotpo Raises $75 Million in Funding, Sets Sights on Creating a Single Platform for All eCommerce Marketing
NEW YORK, Aug. 4, 2020 /PRNewswire/ -- Yotpo, the leading SaaS-based eCommerce marketing platform that helps retail brands accelerate online revenue growth, today announced $75 million in Series E funding. The company has raised $176 million in total. Led by Adam Fisher, Bessemer Venture Partners (BVP) is increasing its investment in Yotpo in response to the company's consistent growth and strong performance.
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.
The latest round will be used to advance Yotpo's 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."
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.
Yotpo's platorm is an ideal solution for everyone -- from entrepreneur-led brands looking to establish themselves to larger businesses seeking enhanced growth. Brands that implement multiple solutions within Yotpo's eCommerce marketing platform generate significant engagement and sales. For example, Ministry of Supply doubled its referral revenue after adding both loyalty and referral programs. Using reviews and visual user-generated content (UGC), Leatherman collected 22,000+ reviews and found 48% of shoppers would return to the site after seeing UGC. Additionally, brands that leverage three or more solutions in Yotpo's platform, such as Steve Madden, can see 50% faster order growth than brands that leverage one Yotpo solution.
"Yotpo's growth and success are deeply tied to how we helped our customers achieve growth and success," said Omri Cohen, Co-founder and COO of Yotpo. "That's why this funding round will also be used toward enhancing global customer support and expanding product education and resources to make it easy and time-efficient for brands to use our platform."
Strategic partnerships with over 500 dominant technology and agency players across the global eCommerce ecosystem, including all major eCommerce platforms like Shopify, Salesforce, Adobe, and BigCommerce, extend Yotpo's ability to unlock greater benefits and capabilities for online businesses. Yotpo continues to build out its network with the addition of reviews syndication partners like Walmart and an alliance with UPS to aid small- and medium-sized businesses.
"Since our first investment more than three years ago, Tomer and Omri have executed flawlessly, expanding the product suite, serving a wider range of customers, and continually hiring strong talent across the organization," says Adam Fisher, a Partner at BVP. "Yotpo is singularly focused on helping direct-to-consumer eCommerce brands solve the dual challenge of engaging consumers and increasing revenue, and with their multi-product strategy and innovative edge, they are uniquely positioned to dominate the eCommerce industry for years to come."
The financing round included participation from existing investors Bessemer Venture Partners, Access Industries, and Vertex Ventures, among others. Hanaco joined the round as a new investor.
Originating in the Shopify app store, Yotpo was founded in 2011 as a user-generated content (UGC) platform, providing eCommerce solutions for reviews, ratings, and visual UGC. The brand then added loyalty, referrals, and SMS marketing to its roster by acquiring Swell Rewards in 2018 and SMSBump in 2020. Yotpo integrates with the tools online businesses use every day, including Google and Instagram, and is available on all major eCommerce platforms, including Shopify, Salesforce Commerce Cloud, Magento (An Adobe Company), and BigCommerce.
Yotpo is a Forbes Cloud 100 company with offices worldwide including New York, London, Tel Aviv and Sofia. More information can be found at www.yotpo.com.
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