sandlaneThe San Diego-based multichannel marketing automation platform announced Thursday that it has raised $20 million in Series A funding.
Five Elms Capital, Blueprint Equity and others invested in the round to give Sendlane a total of $23 million in funding since the company’s founding in 2018.
Although the company officially started three years ago, co-founder and CEO Jimmy Kim told Nerdshala that he started working on the idea with two other co-founders in 2013.
They were all email marketers in different areas of business, but they had some common ground that they were all using email tools they didn’t like. Kim said what she liked came with a very high price tag for a small business. They set out to build their own email marketing automation platform for customers who wanted to do more than just email campaigns and newsletters.
When two other companies were involved in Kim’s exit in 2017, they decided to put both feet into Sendlane to build it into a system that maximizes revenue based on insight and integration.
In late 2018, the company attracted seed funding from Xing Capital and decided to pivot into e-commerce in 2019. “Based on our personal background and the clients we worked with, we felt we did what we did best,” Kim said.
Today, more than 1,700 e-commerce companies use Sendlane’s platform to convert more than 100 points of data on their customers – including abandoned carts, which products sell best and which marketing channels are working. – In engaging communication aimed at increasing customer loyalty. The company said it can increase revenue for customers between 20% and 40% on average.
The company is growing 100% year over year and is seeing over $7 million in annual recurring revenue. It currently has 54 employees, and Kim expects to have around 90 by the end of the year and 150 by the end of 2022. Sendlen currently has more than 20 open roles, he said.
Current and potential growth was a driver for Kim to go after Series A funding. He said Sendlane turned profitable last year, which is why it hasn’t raised a lot of money so far. However, as the rapid adoption of e-commerce continues, Kim wants to be prepared for the next wave of competition she expects in the next year.
He equates companies like ActiveCampaign and Klaviyo to Sendlane, but says his company’s difference is customer service, with shorter wait times and chats that answer questions in less than 15 seconds.
He is also poised for the next vision, which is to integrate data and insights to create meaningful interactions between customers and retailers.
“We want to start building a new space,” Kim said. “We have tons of new products coming out over the next 12 to 18 months and we want to be the single source for customer journey data insights that provide the flexibility to grow your business.”
Two tools to come include Audience, which will integrate customer data and provide insights, and an SMS product for two-way communication and capable campaign-level sending.