E-commerce Marketing Automation Platform Klaviyo Receives $100 Million Strategic Investment from Shopify
Klaviyo, a leading e-commerce marketing automation platform, has received a strategic investment of $100 million from Shopify, according to documents filed with the U.S. Securities and Exchange Commission. This significant investment marks a major milestone in the partnership between the two companies, which will see Klaviyo become the recommended email product for Shopify’s premium merchant plan, Shopify Plus.
A Strong Partnership
Klaviyo CEO Andrew Bialecki has expressed his excitement about the partnership, stating that "We’ve been working closely with Shopify for years and this is a great next step. I’ve talked with their product team and CEO many times — they’re big believers in our mission of empowering creators and they have a lot of respect for the products we’ve built and our customer-first, product-led culture." Bialecki also acknowledged that Shopify has been instrumental in Klaviyo’s growth, stating that "Shopify’s been key to our growth and a great team to work with."
A Brief History of Klaviyo
Founded in 2012 by brothers Simon and Oisin, Boston-based Klaviyo has established itself as a leading player in the marketing automation space. The company has raised around $775 million to date, with its most recent valuation reaching $9.5 billion in May 2021. With over 100,000 paying customers, including prominent brands such as Unilever, Dermalogica, Solo Stove, and Citizen Watches, Klaviyo’s platform has become a go-to solution for businesses seeking to automate their marketing efforts.
The Benefits of Klaviyo
Klaviyo’s platform integrates with existing platforms, allowing businesses to automate the sending of emails and text messages to customers. The platform offers an array of templates and predictive analytics tools, enabling businesses to set up triggers for messages about abandoned carts, product recommendations, and more. This level of automation has enabled Klaviyo to establish itself as a leader in the marketing automation space.
The Competition
While there are numerous competitors in the marketing automation space, including Sendlane, Sendinblue, and Cordial, Klaviyo has managed to differentiate itself through its innovative approach and customer-first culture. With over 1,000 employees, Klaviyo continues to grow and expand its offerings, further solidifying its position as a leading player in the industry.
Shopify’s Investment Strategy
For Shopify, this investment marks another significant step in their efforts to broaden their e-commerce platform’s reach. In recent years, Shopify has made several investments and acquisitions aimed at expanding its capabilities. These include the purchase of shipping logistics startup Deliverr for $2.1 billion, as well as investments in Single, a music and video app used by many businesses on Shopify.
The Future of E-commerce
As the e-commerce landscape continues to evolve, it is clear that marketing automation will play an increasingly important role. With this strategic investment, Klaviyo and Shopify are poised to lead the charge in providing innovative solutions for businesses seeking to optimize their marketing efforts. As CEO Tobi Lütke has stated, "We’re excited about the potential of this partnership to help more merchants succeed on our platform."
Impact of Economic Downturn
The COVID-19 pandemic has had a profound impact on the global economy, leading to an increase in online shopping and a subsequent surge in demand for e-commerce platforms. However, as the economic downturn continues, it is clear that businesses will need to adapt and innovate in order to remain competitive.
Conclusion
Klaviyo’s partnership with Shopify marks a significant milestone in the development of marketing automation solutions for e-commerce businesses. With its innovative approach and customer-first culture, Klaviyo is well-positioned to lead the charge in this rapidly evolving industry. As the demand for e-commerce platforms continues to grow, it is clear that partnerships such as this will be instrumental in shaping the future of online shopping.
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