NEW YORK, March 18, 2021 /PRNewswire/ -- Yotpo announced today that it raised $230 million in Series F funding. With its largest investment round to date, Yotpo aims to deliver the foundation for its all-in-one eCommerce marketing platform, designed to give brands an unparalleled ability to stand out and retain customers in the hyper-competitive world of eCommerce.
"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 & Cofounder, Yotpo.
It's Time for an Evolved eCommerce Experience "On top of having to come up with creative ways to stand out in a competitive and noisy space, eCommerce teams are bogged down by managing so many marketing point solutions," says Tagrin. "Those solutions, with siloed customer data, force marketers to work harder and definitely not smarter. As a result, experiences are lagging behind and their customers are walking away."
Tagrin continues, "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 ROI for their marketing efforts. Thanks to the incredible support of our investors and the passionate effort of the Yotpo team, the full release of our multi-product, synergistic platform is just around the corner."
Greater Than the Sum of Its Parts — Imagine What Yotpo's Platform Will Do With the latest fundraise, 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 Yotpo SMS Marketing, Yotpo Loyalty & Referrals, Yotpo Reviews, and Yotpo Visual UGC. This connected suite of solutions unlocks unified customer data that will allow brands to get more from every campaign and maximize their ROI.
Founded in Australia in 2010, Princess Polly is one of the fastest growing brands in the US market that serves women between 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 were talking to each other. Yotpo's approach to integrated products on a single platform solved that for us," said Kim Zorn, Head of Performance, Princess Polly. "With Yotpo, we can send review requests via SMS, reward loyalty points for reviews, ask 5-star reviewers to make referrals, send loyalty members tier-specific texts, and so much more. The Yotpo platform makes it so much easier to give our customers the absolute best experience with our brand — it's brought our eCommerce dreams to life!"
VICI is a California-based fashion brand that's growing at a meteoric rate, and the cult favorite is also using multiple Yotpo solutions to accelerate that growth. "We can create more connected and empowering experiences every step of the way, and engage our customers so much more personally and effectively. We're excited to tap into the full potential of Yotpo's platform," said Aimee Dudum Colorado, Chief Merchandising & Marketing Officer, VICI.
Product synergies on the Yotpo platform showcase the power of using deeply integrated marketing tools to drive more impact. Brands that use two or more Yotpo products have grown 54% faster than those that use only one.
Valuation, Participation & Partners The latest investment round puts Yotpo's valuation at $1.4 billion, in part due to the company's strong performance and consistent growth. Yotpo has crossed the $100 million annual recurring revenue (ARR) threshold after seeing massive acceleration across most business metrics. This is driven by demand for our products — in particular Yotpo Loyalty, which nearly doubled last year, and Yotpo SMS Marketing, which grew by 170%. Yotpo now serves over 30,000 customers that represent the best in eCommerce, 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 eCommerce as the future of retail, having invested in disruptor brands like Warby Parker and Peloton, giants like JD.com, and best-in-class SaaS companies like Stripe and Twilio. We are excited by Yotpo's approach to provide a unified marketing tech stack and the value it provides to brands and online shoppers in the process," said John Curtius, Partner at Tiger Global.
To give brands best-in-class support, strategy, and enablement, Yotpo has partnered with more than 500 dominant agencies, platforms, and technologies that make eCommerce stores run. Yotpo will invest in deepening alliances with current and future partners, as well as expanding tech stack integrations, so that any brand can connect to Yotpo easily and seamlessly. The number of tech integrations with Yotpo products grew 40% year-over-year in 2020.
"The past twelve months, we've seen impressive growth from companies who were smartly positioned in eCommerce. Yotpo is no different and belongs up there with the biggest players in the space — Shopify, Affirm, BigCommerce," said Adam Fisher, Partner at Bessemer. "As a long-time investor, it's great to see Yotpo's big bets pay off, and the success so many brands have seen using Yotpo's growing suite of solutions."
About Yotpo Yotpo, the leading eCommerce marketing platform, helps forward-thinking brands like Patagonia, Steve Madden, Frank Body, Helly Hansen, Brooklinen, and GoPro accelerate direct-to-consumer growth. Yotpo's single-platform approach integrates data-driven solutions for Loyalty, SMS Marketing, Reviews, and more, empowering brands to create smarter, higher-converting experiences that spark and sustain customer relationships. 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, Israel, and Bulgaria. Yotpo is hiring! Visit yotpo.com/jobs.