NEW YORK, November 8, 2017 /PRNewswire/ --
Financing will be used to meet the demand from high-growth commerce brands for an integrated user-generated content platform and accelerate product innovation, especially in artificial intelligence and machine learning.
Yotpo, the leading user-generated content marketing platform, announced today the completion of a $51 million round of financing led by Access Industries (ClalTech), bringing total funding to $101 million. The company also announced it has quadrupled revenues over the past 20 months.
Unlike point solutions that focus on reviews or photos, Yotpo's integrated solution lets brands collect, curate, manage, and respond to every type of user-generated content from a single platform. Through a combination of technology, integrations, and partnerships, Yotpo gives businesses the ability to effectively leverage customer content throughout the buyer journey to increase trust, social proof, and sales.
"We're living in a post-Amazon world where even big, established brands are collapsing because it's impossible to compete with Amazon on price or fulfillment," says Yotpo CEO Tomer Tagrin. "The only way commerce brands can win is through customer experience and building an authentic brand that people truly care about and talk about."
With Yotpo, businesses can collect customer content like reviews, photos, and Q&A and use it to build a stronger brand and better customer experience. Yotpo's data-driven post-purchase content requests have the highest order-to-review conversion rates in the industry. Thousands of brands worldwide, from emerging startups to established enterprises TYR, Staples, and Everlast, use Yotpo. Recently, the company is experiencing increased interest from digitally native, vertical commerce brands like MVMT Watches, UnTUCKit, and Brooklinen.
As part of Yotpo's continued efforts to build a robust infrastructure that serves brands at every growth stage, they're investing further in product innovation, especially in artificial intelligence and machine learning.
"For us, AI isn't a buzzword but a core technology already powering our solution today. But we're also seeing a real opportunity to incorporate deep learning to solve the most pressing challenges of commerce businesses. We're just touching the surface of the potential here, and we'll have exciting news coming soon," says Tagrin.
The financing round included full participation from existing investors Bessemer Venture Partners, Marker LLC, Vintage Partners, Blumberg Capital, Rhodium and 2B Angels. Vertex Ventures joined the round as a new investor. Daniel Shinar, Access Industries' Head of Israeli tech investments and ClalTech CEO, will join Yotpo's Board of Directors.
"We've been working with Yotpo since 2014. We have gained enormous respect for what co-founders Tomer Tagrin and Omri Cohen have built - a company with a unique culture and exceptional execution skills. When we had the opportunity to double down, we didn't hesitate," Shinar says. "Yotpo is answering the growing demand for an integrated user-generated content platform and they are becoming the next generation marketing platform for B2C companies."
The company plans to use the funding to build out their enterprise-grade platform and continue global expansion, with the opening of a second US office in Salt Lake and the addition of 150 employees, to bring total headcount to over 400, across their Tel Aviv, New York, and London offices.