- Yotpo — a leading SaaS-based eCommerce marketing platform that helps retail brands accelerate online revenue growth — announced it has raised $75 million in Series E funding
Yotpo — a leading SaaS-based eCommerce marketing platform that helps retail brands accelerate online revenue growth — announced it has raised $75 million in Series E funding. Including this round, the company has raised $176 million in total.
This funding round was led by Adam Fisher of Bessemer Venture Partners (BVP). BVP is increasing its investment in Yotpo in response to the company’s consistent growth and strong performance.
Specifically, 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 funding round in November 2017. And the company expects to double its revenue within the next two years.
When the COVID-19 pandemic first started, Yotpo saw a surge in sign-ups to help achieve 170% YoY net new ARR as well as record lows in customer churn. And 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.
The key to delivering these experiences is for e-commerce marketers to have a reliable and single source of truth that provides the critical insights necessary to be competitive in today’s retail climate. And Yotpo’s integrated multi-solution platform provides marketers with unified customer content and cross-product behavior data, deeper audience segmentation, and predictive analytics. This invaluable snapshot into how customers are engaging across different marketing touchpoints enables retail brands to unlock incremental revenue opportunities that would otherwise be missed.
Brands that implemented 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. And 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. Plus brands that utilize three or more solutions in Yotpo’s platform like Steve Madden can see 50% faster order growth than brands that tap into one Yotpo solution.
Strategic partnerships with more than 500 dominant technology and agency players across the global eCommerce ecosystem, including all major eCommerce platforms such as Shopify, Salesforce, Adobe, and BigCommerce extend Yotpo’s ability to unlock greater benefits and capabilities for online businesses. And 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.
“In the Covid era, every business is an eCommerce business. 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.”
— Tomer Tagrin, Co-founder and CEO of Yotpo
“Yotpo’s growth and success are deeply tied to how we helped our customers achieve growth and success. 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.”
— Omri Cohen, Co-founder and COO of Yotpo
“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. 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.”
— Adam Fisher, Partner at BVP