I’m thrilled to share that Yotpo has raised $230 million in Series F funding, our largest investment round to date, putting us at a valuation of $1.4 billion. We’ve officially reached unicorn status!
To say we’re grateful is an understatement. To our investors, customers, and our entire partner ecosystem, thank you. You help shape our direction, and your guidance and support got us to where we are today. To our employees, Tomer and I are proud to stand side by side with you. This accomplishment is no small feat, and I’m honored that you choose to spend your time and energy at Yotpo, building the foundation for the future of eCommerce brands. Thank you.
To our brands: We’ve got a lot in store for this investment.
We’re making eCommerce marketing smarter and easier than ever before
It’s clear to us all: eCommerce is booming, and it’s going to grow even more in 2021. Everyone is buying everything online — now, every business is an eCommerce business.
The opportunity for brands is incredible, but it’s also a challenge. The competition is crazy, it’s harder than ever to stand out, and brands are feeling the pain every day. Acquisition costs keep rising, it’s difficult to keep customers coming back, and there’s always too much to juggle, too many solutions in your tech stack to manage, and not enough time.
We get it. We’re marketers, too. That’s why this funding round matters so much, and not just to us. We have big plans — and a product roadmap — that will simplify the things that make your life difficult, do the hard work for your brand, and make it easier to get more impact from every campaign.
What are we doing with this money?
We’ll use this funding to accelerate our eCommerce marketing platform. We’re deepening the synergies between our Loyalty & Referrals, SMS Marketing, Reviews, and Visual UGC products, as well as growing our many partnerships and integrations with essential eCommerce technologies.
We’re enhancing our product synergies
We’ve been hard at work building synergies between our products to make life easier for our customers and provide experiences that go above and beyond what you can do with siloed tools — and it’s our goal to enhance these even further.
In fact, Yotpo synergies are already providing more effective solutions for major customer pain points. For example, today, brands using multiple products can do any of the following:
- Expose customers to new products on the channels they prefer. With SMS, Loyalty, and Reviews data working together, we can tell you when it’s the right time to send a message, what products to recommend, and the right discounts to offer — giving your customers everything they need to purchase right in the palm of their hand.
- Bring customers back to buy again. Use Loyalty and SMS to re-engage customers who haven’t purchased in a while (including those who might churn soon!). Use our integrated data to personalize purchase incentives, or create a sense of urgency by reminding loyalty members that they’ll level up to a new VIP tier with one more purchase.
- Collect customer data and use that to personalize all touchpoints. Brands can collect content and gather data via SMS (e.g.: “What’s your skin type?”) and customize every interaction with that information, like the reward incentives you offer or the reviews you show — increasing the likelihood that they’ll convert.
- Reclaim more abandoned carts. Our platform knows exactly what reviews and visual UGC will convert those lost sales, and SMS automation lets you trigger a message so you can reclaim over 21% more abandoned carts.
- Create more effective customer journeys based on buying behavior. Our data can show you essential customer insights, like which customers are most likely to purchase or churn in the next 30 days, and our recommendations can tell you exactly how to engage to get the greatest impact — whether that’s sending an SMS, adjusting loyalty points, or something else.
See how Yotpo’s platform can do the hard work for you.
These are just a few of the integrated capabilities currently available. As we continue to build out our platform, we’ll connect more solutions in new and effective ways to solve your everyday challenges. Rather than managing 5-10+ individual marketing technologies, brands can manage their strategy from one unified platform, saving their teams valuable time and effort.
We’re already helping brands streamline. Founded in Australia in 2010, Princess Polly is one of the fastest growing brands in the US market — and they use the entire Yotpo platform.
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.
With Yotpo, we can send review requests via SMS, reward loyalty points for reviews, ask five-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!”
— Kim Zorn, Head of Performance, Princess Polly
VICI is a California-based fashion brand that’s also growing at a meteoric rate, and the company is using multiple Yotpo solutions to accelerate that growth. Yotpo Reviews helps establish a baseline of trust in the brand and its products, Loyalty & Referrals builds on that trust and empowers satisfied customers to advocate for the brand, and SMS enables VICI to personally connect with their engaged community — all from one integrated platform.
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.”
— Aimee Dudum Colorado, Chief Merchandising & Marketing Officer, VICI
We’ll grow our partnerships & integrations
While we’ll continue to improve our products, they’re only as strong as the partners, agencies, and platforms we work with throughout the eCommerce ecosystem. Integrations are essential to making Yotpo easily accessible to every business while also expanding our capabilities, and our partnerships allow us to ensure the success of our mutual D2C brands.
With this funding, we will invest in deepening our alliances with current and future partners, as well as expanding our tech stack integrations, so that any brand can partner with Yotpo seamlessly.
A platform that creates better experiences for shoppers and lets brands grow faster
Ultimately, we’re creating these synergies so your brand can offer more to your customers, because when all your marketing tools talk, your customers can tell the difference.
Below is just one example of a seamless customer experience powered by Yotpo’s integrated platform.
By connecting our products on a single platform, we’ll be able to provide an even more cohesive approach to the buyer experience, helping brands to drive more effective marketing campaigns and faster growth. In fact, brands that use two or more Yotpo products grow 54% faster than those that use only one.
In addition to synergies, our comprehensive platform will provide:
- Easier, quicker implementation of every Yotpo product
- More powerful and time-saving marketing campaigns for smaller teams, allowing them to work smarter, not harder
- Support for marketers on larger teams that are burdened by too many tools that don’t communicate
- Unified customer data and sophisticated technologies that unlock practical incremental revenue opportunities that siloed tools just can’t match
- Deeper integrations with the essential tools in your tech stack
- An easy-to-use, single sign-on, single billing, and one-stop location for performance dashboards and analytics
Plus, a whole lot more. We’re excited to use this funding round to work on more features (and products) that will give brands the marketing edge they need to attract, engage, and retain their customers in this eCommerce-first world.
Stay tuned for updates from us as we continue to improve and innovate our solutions and platform.
Thank you everyone. We are so excited and humbled to share this news with you, and we’re thrilled for this next chapter in Yotpo’s history.
— Omri and Tomer, Co-Founders
P.S. We’re hiring! If you want to help define the future of eCommerce, check us out. We’d love to have you join us.
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