Israeli ecommerce firm Yotpo is officially a unicorn. The company is now worth $1.4 billion after completing a $230 million Series F financing round led by Bessemer Venture Partners and Tiger Global.
Yotpo has increased in value by about 50% in just six months. Just last August the Yotpo raised $75 million in a Series E financing round which then gave it a valuation under $1 billion.
Founded in 2011 by Omri Cohen and Tomer Tagrin, Yotpo provides a platform with authentic rather than fake reviews of products by consumers. It also helps retail brands accelerate online revenue growth.
Yotpo has seen 300% increase in customers in 2019 and a 250% increase in annual recurring revenue (ARR) since its $51 million raise in November 2017. The company expects to double its revenue within the next two years.
Yotpo has 500 employees in its offices in Tel Aviv, Yokneam, New York, London, and Sofia. During the early months of Covid-19, Yotpo saw a huge 170% year-on-year jump in new customers and record lows in customer churn.
The company promises to let users leverage its official partnerships with Google and Facebook to boost brand discovery and increase traffic from search and social and add seller ratings to Google Adwords campaigns to increase click-through rates and reduce acquisition costs.
It also offers to display customer content at key conversion points across a client’s web site and to create “beautiful, on-brand displays with customizable review widget options.” Yotpo says that it will encourage product discovery and decrease homepage bounce rate by “building trust at the beginning of your buyer journey.”
“Two months into Covid, it became very clear to us from the data that something really big was happening in e-commerce,” says Yotpo Cofounder and CEO Tomer Tagrin. “And then we decided to move to play offense. This funding round also is about playing offense.”
“On top of having to come up with creative ways to stand out in a competitive and noisy space, eCommerce teams are bogged down by managing so many marketing point solutions. Those solutions, with siloed customer data, force marketers to work harder and definitely not smarter. As a result, experiences are lagging behind and their customers are walking away.”