Yotpo raises $75 million at valuation of close to $1 billion

Israeli SaaS-based eCommerce marketing startup Yotpo has raised $75 million Series E financing round.

The current round led by Adam Fisher with participation from existing investors Bessemer Venture Partners, Access Industries, and Vertex Ventures, and Hanaco as a new investor.

The company has raised $176 million to date. Len Blavatnik has also invested in the company.

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 latest round will be used to create an industry-defining eCommerce marketing platform, with an integrated product set of Reviews, Visual User Generated Content (UGC), Loyalty, Referrals, and SMS Marketing, that helps brands of all sizes accelerate growth and drive customer lifetime value in an increasingly competitive arena.

Yotpo cofounder and CEO Tomer Tagrin said, “In the Covid era, every business is an eCommerce business. Our vision is to equip businesses of every size, across every industry, with the best possible technology to efficiently achieve maximum growth. To that end we are building a single, fully integrated platform that empowers businesses to create exceptional, customer-first commerce experiences.”