Shopify Invests $100M in Marketing Automation Startup Klaviyo

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Ecommerce Marketing Automation Platform clavio received a $100 million strategic investment from Shopify, according to documents filed with the US Securities and Exchange Commission. The revelation coincided with ad that Klaviyo and Shopify will strengthen their existing partnership by making Klaviyo the recommended email product for Shopify’s premium merchant plan, Shopify Plus, as well as giving Klaviyo early access to Shopify features in development.

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“We’ve been working closely with Shopify for years, and this is a great next step,” Klaviyo CEO Andrew Bialecki told TechCrunch via email. “I’ve spoken to their product team and CEO many times – they strongly believe in our mission to empower creators and they have a lot of respect for the products we’ve built and our customer-centric culture first and foremost. Shopify has been key to our growth and a great team to work with, and we’re excited that this will help us work faster while helping more of their customers.”

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Founded in 2012, the Boston company Klaviyo, which TechCrunch It has profiled extensively – Integrates with existing platforms (eg Octane AI, Recharge) to automate sending emails and text messages to customers. Using Klaviyo, businesses can set up triggers for abandoned cart messages, product recommendations, and more using a variety of templates and predictive analytics tools.

There is no shortage of competition in the field of marketing automation technologies (see below). sendline, sendinblueas well as cordial name a few). But Klaviyo has been incredibly successful reaching over 100,000 paying customers including Unilever, Dermalogica, Solo Stove and Citizen Watches.

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To date, Klaviyo, which has over 1,000 employees, has raised about $775 million. As of May 2021, the startup was valued $9.5 billion by investors including Sands Capital, Counterpoint Global, Accel and Summit Partners.

For Shopify, Klaviyo is the latest in a string of investments and acquisitions to expand the reach of the ecommerce platform. May Shopify snapped up $2.1 billion shipping logistics startup Deliverr — the biggest purchase in Shopify history — to launch an “end-to-end” logistics platform for merchants. Just this week, Shopify invested in Single, the music and video app used by many businesses on Shopify, after pledging shares in CMS Sunity developer.

To the extent they’re focused, Shopify’s last year of investment has been leaning towards recommendations and marketing tech. Last September, Shopify invested and partnered with Yotpo, which provides marketing tools and products for consumer merchants. The e-commerce giant just recently invested in Crossing Minds, a startup offering a platform that delivers “personalized experiences” ostensibly without the use of personal data.

Of course, there is pressure on Shopify to better weather what is likely to be an extended economic downturn. Last month, Company laid off 10% of its workforce – about 1,000 employees – in what CEO and founder Toby Lütke called a “necessary” move in response to users abandoning online orders and reverting to old shopping habits. The company posted a net loss of $1.2 billion for the second quarter of 2022 and warned shareholders during a phone call last week that inflation would weigh on earnings for the rest of the year.


Credit: techcrunch.com /

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