Israeli ecommerce firm Yotpo is looking to its big exit. Yotpo is planning on a NASDAQ IPO which Calcalist reports would give the company a $2.5 billion valuation. Calcalist also said that the IPO should bring the company $400-500 million and take place in early 2022.
Yotpo officially became a unicorn in March with a $1.4 billion valuation. The unicorn status came after the company completed a $230 million Series F financing round led by Bessemer Venture Partners and Tiger Global. At that time, Yotpo had increased in value by about 50% in just six months. Just last August Yotpo raised $75 million in a Series E financing round which then gave it a valuation under $1 billion.
So now the company expects to almost double its value at the IPO.
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 a 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.”