SMS Marketing Company Postscript Raises $4.5 Million In Funding

By Amit Chowdhry ● Dec 5, 2019
  • SMS marketing company Postscript announced it raised $4.5 million in a seed round of funding

SMS marketing company Postscript announced it has raised $4.5 million in a seed round of funding from several investors, including Y Combinator, Accomplice, 1984vc, and Ali Capital. And the company also received backing from several entrepreneurs in the space like Kayak founder Paul English, Wufoo founder Kevin Hale, Front founder Mathilde Collin, Klaviyo founder Andrew Bialecki, Drift founder Elias Torres, and Podium founders Eric Rea and Dennis Steele.

The e-commerce industry is growing at a rapid pace and Shopify is reporting about 50% YoY growth while independent brands are thriving in tandem. What Postscript does is help brands of all sizes continue to grow by offering flexible, customizable, direct-to-consumer SMS marketing tools.

With this round of funding, Postscript will focus on expanding its fully-remote workforce and onboarding new clients in a wide variety of e-commerce verticals.

“At Postscript, we obsess about supporting independent brands & e-commerce merchants and will always put their needs first. Our approach to text messaging emphasizes brands build meaningful relationships with their customers by respecting the SMS inbox and encouraging two-way communication. So far our competitive advantage has been our people and our product, and this funding will help us continue along that path. By operating remotely, we’re able to hire in any region, resulting in an extremely talented team dedicated to delivering a top-tier product and customer experience,” said Postscript CEO Adam Turner.

Postscript — which has an exclusive focus on the e-commerce ecosystem — specializes in creating enriched messages through one-click integrations and hyper-targeted triggers based on user behavior. And their data shows click-through rates in messages sent on the platform between 7.5% and 40%, which is substantially higher engagement than the average email marketing of 2%.

“Every year text messaging occupies a larger percentage of personal communication. The same shift towards messaging is just beginning between brands and their customers. With their leading platform and focus on the end user’s messaging experience, Postscript is in a unique position to help e-commerce businesses grow. We’re excited to partner with the Postscript team to build a category-defining company in this space,” added lead investor TJ Mahoney of Accomplice.

Postscript has a goal to introduce SMS as a mainstream marketing channel for e-commerce companies while respecting the personal text message inboxes of end-users. And Postscript has built advanced targeting tools thus enabling brands to engage their customers with the most tailored and relevant messages possible. This approach helps preserve text message inbox integrity while also keeping unsubscribe rates low.

“The Postscript team has taken a product-first approach to a gigantic, fast-growing market, and the growth speaks for itself. They have outstanding founder/product/market fit, and I believe what they’re building will be an essential part of any e-commerce company’s marketing stack. I’m proud to support them in this round,” explained angel investor Paul English.

Postscript’s successful seed funding and growth prove that SMS marketing is a big deal. Ever since Postscript launched in September 2018, the company acquired over 500 customers, including brands like Native, Brooklinen, StackCommerce, Frey, Oars + Alps, and Olivers. And its customers are seeing more than 26x ROI with clickthrough rates ranging between 7.5% and 40%.

Postscript is confident about its platform by offering a 4x ROI guarantee or get a refund. The company has not had to give a refund to a single customer.