Yotpo, an Israeli startup that enables companies to generate online reviews and content, said Thursday it raised $230 million in Series F funding, its largest investment round to date.
The latest fundraising round puts Yotpo’s valuation at $1.4 billion, the company said. The startup has crossed the $100 million annual recurring revenue (ARR) threshold as demand for the firm’s suit of software products has grown. Yotpo serves over 30,000 ecommerce customers.
The Tel Aviv-based firm helps brands create customer content by messaging users through email and text messages to get their reviews about a product they have purchased. It adds marketing features such as coupons, and enables customers to upload photos of themselves with the new product they have acquired.
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Led by Bessemer Venture Partners and Tiger Global, the funding round saw participation from existing investors including Claltech Investment, Coin Ventures, Hanaco, Vertex Ventures, Vintage Investment Partners, the statement said.
The money raised will enable Yotpo to further develop and expand the reach of its ecommerce marketing platform that help give brands, including Patagonia, Steve Madden, Princess Polly, Helly Hansen, Brooklinen, and GoPro, the ability to stand out and retain customers in the competitive world of online acquisitions, the company said in a statement.
“We have always believed that ecommerce would become the dominant form of shopping, but 2020 was an incredible acceleration. 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,” said Tomer Tagrin, CEO & co-founder of Yotpo, in the statement.
This has made it important for marketers to come up with more creative ways to stand out in the competitive and noisy space, he said.
“By integrating our 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 return on investment (ROI) for their marketing efforts,” Tagrin said.
With the latest funds, Yotpo plans to double its product and R&D team to accelerate the rollout of its full platform of products that will be connected to one another to provide unified customer data.
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.
The firm has offices globally including in New York, London, Israel, and Bulgaria.