Yotpo, the US-headquartered operator of a cloud-based marketing platform for online merchants, secured $230m yesterday in a series F round featuring Claltech, a venture capital subsidiary of conglomerate Access Industries.
Venture capital firm Bessemer Venture Partners and hedge fund manager Tiger Global Management co-led the round, which included Coin Ventures, Hanaco, Vertex Ventures, Vintage Investment Partners and undisclosed others.
Founded in 2011, Yotpo has created a software platform that enables e-commerce platform operators to integrate their marketing activities, including reviews, text message-based marketing activities and loyalty schemes, in a single place where they can be managed.
The round valued the company at $1.4bn and pushed its overall funding to $406m. It came after a $75m series E led by BVP and backed by Access Industries, Hanaco and Vertex Ventures in August 2020.
Yotpo had previously received $51m in a 2017 series D round led by ClalTech that also featured BVP, Vertex Ventures, Vintage Investment Partners, Marker, Blumberg Capital, Rhodium and 2B Angels.
BVP led the company’s $22m series C round the year before, investing alongside Access Industries, Innovation Endeavors, Marker, Vintage Investment Partners and Blumberg Capital.
Access Industries had first invested in Yotpo in 2015 through a $15m series B round led by Marker and also backed by Vintage Investment Partners, Innovation Endeavors and Blumberg Capital.
Blumberg Capital took part in the 2015 round as an existing backer. Yotpo’s earlier investors including Rhodium, Gandyr Group, 2B Angels, Magna Capital Partners and Plus Ventures.
Tomer Tagrin, Yotpo’s co-founder and chief executive, said: “We have always believed that e-commerce would become the dominant form of shopping, but 2020 was an incredible acceleration. The e-commerce arena is the most important place to be.
“Everyone is selling everything online now, from entrepreneurs setting up shop in their basement to some of the largest brands in the world. But this also means it is only going to get more difficult, expensive and inefficient to market to customers.”
