Israeli start-up Yotpo completed a fifth round of raising $ 75 million

The Israeli start-up Yotpo, which is developing a system for marketing through the content of surfers and consumers, announced today (Tuesday) the completion of a fifth round of raising $ 75 million. The fundraising was led by the Bessemer Fund, which was joined by previous investors - the Access Industries funds of the Len Belvatani Fund and the Vertex Fund, and a new investor - the Hanaco Fund of Alon Lifshitz. Together with the previous round of fundraising in November 2017 and previous fundraisers, the company’s fundraising amount is $ 176 million.
Yotpo's system helps commerce sites market themselves through content created by customers, whether in text or images. To encourage customers to take part in its system, Yotpo's platform enables influential surfers to participate in benefit sites on commerce sites. The corona era has worked well with the company: marketing executives have shifted budgets from offline to online, Internet use has skyrocketed, and so has the volume of consumption through e-commerce platforms.
Yotpo went on the raising round at the beginning of the Corona crisis, and according to Omri Cohen, the company's founder and vice president of operations, despite the challenging period - the company was surprised by the reactions of investors. Ours was to raise $ 50 million, and while on the move we discovered that there was a demand for the product and many funds sought to join the round. ”The capital raised will be used to expand the company’s development team, customer service and sales.
The company has grown rapidly in recent years, and in the last two years has made two acquisitions of start-ups: In 2018, the company acquired the American Swell Rewards, which developed a platform that allows brands to reward surfers for their contribution to the brand's marketing system. For marketing by sending text messages.
Yotpo's customers mainly include small online stores, which Cohen says are about 70% of the company's tens of thousands of customers. The company also serves major brands such as IKEA, Steve Madden and Patagonia. Its customers in Israel include Super-Pharm and electrical warehouses. The company operates in the SaaS (software as a service) model, and charges its customers a monthly or annual fee depending on the scope of use of the business.