Yotpo to Use $51 Million in Funding to Power eCommerce Industry with Artificial Intelligence
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.
Yotpo allows businesses to collect customer content like reviews, photos, and Q&A and to use it to build a stronger brand and better customer experience — what they see as the real differentiators in an ecosystem where Amazon is ubiquitous.
The company’s CEO and Co-founder Tomer Tagrin, says the funding will be used to continue to propel Yotpo’s innovation though artificial intelligence and machine learning technologies.
“For us, AI isn’t a buzzword, but a core technology already powering our solution today,” he explains. “We’re also seeing a real opportunity to incorporate deep learning to solve the most pressing challenges of commerce businesses,” he says.
Yotpo works with thousands of brands worldwide, from emerging startups to established enterprises, like TYR, Staples, and Everlast, as well as digitally native, vertical commerce brands like MVMT Watches, UnTUCKit, and Brooklinen. Their focus on customer content as the foundation for powerful consumer experiences has helped these brands become customer favorites.
The laser-sharp focus on technology is set to ensure that Yotpo remains the most robust, innovative customer content marketing platform on the market, and to create a better experience for both shoppers and brands as the eCommerce industry evolves.
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.”
Yotpo also plans to use the funding to 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.
Tagrin says the continued technological innovation and growth are just the beginning. “We’re just touching the surface of the potential here, and we’ll have exciting news coming soon.”
The author Abhishek Kumar Jha
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