Yotpo Reaches Unicorn Status and Uses New Funding to Commit to E-Commerce Services Expansion
In its latest round of funding, e-commerce marketing platform Yotpo has raised $230 million from investors, its largest investment round to date. This has resulted in a total company valuation of $1.4 billion, which earns Yotpo unicorn status and enables the company to launch a comprehensive expansion plan.
With this new funding, Yotpo has outlined several areas of investment within the business that will address brands’ growing need for e-commerce support. The platform currently provides marketing services to brands, particularly those centered around SMS marketing, loyalty programs and reviews. The expansion plans include integrating those programs more substantially so that customers can gain a more cohesive view of their marketing efforts.
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Specifically, Yotpo has announced that it will enhance its product synergies and remove silos between its tools. While collecting data and running analysis can provide interesting information, this is only truly useful when the information can be directed into action. Through a more connected approach, Yotpo will be able to help customers put together more nuanced marketing strategies that consider multiple customer preferences.
“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,” said Omri Cohen, COO & co-Founder at Yotpo.
Similar collaboration between the Reviews, visual UGC and SMS tools can let retailers identify which carts are at risk of abandonment and which reviews and media will help to convert those lost sales – and then send a text with that exact content. Yotpo reports that this strategy is currently helping its customers reclaim over 21% of abandoned carts.
The $230 million in funding is also going to be invested into increasing the number of integrations that Yotpo’s platform supports. In today’s e-commerce landscape, brands are utilizing a number of different solutions providers in order to provide quality service across the brand. With greater integration support, Yotpo customers will be able to sync their data collection and marketing strategies into a single unified platform.
“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,” said Cohen. “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.”
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