Tel Aviv-based marketing service Yotpo Inc. announced on Tuesday that it has completed a $75 million series E financing round led by Adam Fisher of Bessemer Venture Partners. Existing backers Access Industries and Vertex Ventures also took part in the round along with Hanaco Ventures for whom this was the first investment in the company.
Yotpo was founded in 2011 by Omri Cohen and Tomer Tagrin as a platform for creating consumer reviews and visual content. Today, following two strategic acquisitions, it develops a platform that aids e-commerce websites market their products online, by offering a unique user experience and increasing sales. Among Yotpo’s customers are brands like Patagonia, Bob’s Discount Furniture, Drunk Elephant, MVMT Watches, Gymshark and Rebecca Minkoff. The company employs more than 500 workers in offices in Tel Aviv, Yokneam, New York, London, and Sofia.
“We embarked on the fundraising round in March, despite Covid-19, as planned,” Cohen told Calcalist. “We raised money in a period of uncertainty. Our second-quarter results look excellent, but we went to market at a time when nearly nobody was conducting deals of this magnitude. One of our investors took the initiative to lead the round and was joined by others. We ended up raising $25 million more than we had initially planned.”
According to company figures, since its last financing round in November 2017, Yotpo experienced a 300% increase in customers and a 250% increase in annual recurring revenue. The company anticipates it will double its income in the next two years because due to the Covid-19 outbreak there has been a significant boost in purchases on e-commerce sites. This has led to marketing executives transferring budgets from offline campaigns to online campaigns, resulting in a large increase in demand for the company’s products.
Yotpo aims to use the new capital to recruit employees and continue acquiring companies, despite the Covid-19 crisis.
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