Yotpo

Yotpo is an Israeli-founded ecommerce marketing platform that allows brands to personalize customer experiences when visiting their brand’s ecommerce websites in order to increase consumer spending and minimize the incidence of abandoned carts. The solutions include AI-powered systems for collecting reviews and ratings that allow for customer segmentation. It also provides targeted ads by displaying user-generated content (UGC) dynamically on the brand’s ecommerce site and enticing customers with customer loyalty and referral schemes to help drive sales. 

With Yotpo’s acquisition in January 2020 of SMSBump, a full-service SMS marketing solution, the firm claims to be the only ecommerce marketing platform offering multichannel customer engagement solutions within a single platform. The firm claims that since the acquisition, it has more than doubled its growth and plans to triple the dedicated product and R&D team for its SMS offerings by the end of 2022. 

The firm also accelerated its focus in the ecommerce space and launched “Click-to-Buy,” a first-of-its-kind SMS feature in April 2022 that allows brands the ability to send individualized product recommendations via SMS, a digital wallet pass for customer loyalty services, as well as a Subscription commerce app for Shopify Merchants introduced in June 2022. In May 2023, the firm launched the Yotpo eCommerce Retention Marketing Platform to help ecommerce brands improve customer retention. Another key strength of Yotpo is the number of integrations to leading ecommerce platforms and apps (80 integrations or more by September 2021). 

Funding and financials

Yotpo’s most recent funding was a USD 30 million strategic investment made by ecommerce giant Shopify in September 2021. The firm also raised USD 230 million in Series F additional funding in March 2021 led by Bessemer Venture Partners and Tiger Global Management which valued the company at USD 1.4 billion. The key focus of Yotpo’s fundraising was to deepen its partnerships with its existing and potential ecommerce website partners as well as increase the number of integrations that can connect to its platform across the marketing stack. 

Yotpo had gone beyond the USD 100 million annual recurring revenue (ARR) threshold as of March 2021.