E-commerce giant Shopify, a provider of advanced software platforms for online shoppers and retailers with millions of registered retailers, has invested an undisclosed amount in Israeli e-marketing company Yotpo and will enter into a multi-year partnership with the company to help customers grow their business.
According to a joint announcement released Thursday, the partnership will help Yotpo’s growth and product development path, while providing retailers with new ways to “connect with their customers and grow their business through powerful tools and opportunities.” innovative marketing solutions.
The two companies will work together to build better shopping experiences and improve relationships between retailers and their customers as part of new functions for Shopify developers, the statement said.
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Shopify was founded in Ottawa in 2006. It has grown into a leading global commercial company that helps entrepreneurs and retailers manage their retail business. The company claims to work with over 1.7 million retailers in over 175 countries, including top brands such as Heinz, Steve Madden and Gymshark. Shopify generated nearly $ 3 billion in annual revenue in 2020 and processed nearly $ 120 billion in gross merchandise – the total dollar value of orders made possible by the Shopify platform – in the same year. , according to his financial data.
Yotpo is a Tel Aviv-based company founded in 2011 that helps brands with marketing plans such as creating custom content by sending messages to customers via email and text to get their opinions on the product they bought. It adds marketing features such as coupons and allows customers to post their photos with the new product they bought. Yotpo says it specializes in increasing customer engagement and retention, and has grown to more than 30,000 e-commerce customers worldwide.
Earlier this year, Yotpo raised $ 230 million in Series F funding, its largest investment round to date, with an estimate of $ 1.4 billion.
Tomer Tagrin, co-founder and CEO of Yotpo, said the new partnership with Shopify is an “important step” for the company and built on an existing working relationship with Shopify. The two companies have joint customers such as Steve Madden, the online store of women’s clothing Princess Polly and the American lingerie store ThirdLove.
According to Tagrin, Shopify merchants will be able to use “five top products” developed by Yotpo, including SMS marketing, loyalty programs and testimonials, reviews and ratings, and a tool that displays photos and videos of customers during their shopping journey. .
“We look forward to working even more closely with Shopify to provide smarter, more connected experiences that create real value for our shared customers,” Tagrin said.
The platform’s partnership with Shopify “deepens the integration between our two technologies,” he added, “directly addressing the huge amount of time and energy that retailers currently have to spend on bidding to attract customers’ attention.” »
Brandon Chu, vice president of product acceleration at Shopify, said Yotpo is “a great example of what is possible in the Shopify ecosystem of partners and developers. We saw the team deliver incredible value to retailers and admired their perseverance and passion for building a better version of e- stores where independent brands have relationships with their customers. ”
“Their marketing technology solutions have earned the trust of thousands of retailers, and we are excited to invest in their growth and create even more impact together,” Chu added.
Yotpo integrates with tools used by online companies on a daily basis, including Google and Instagram, and is available on all major e-commerce platforms, including Salesforce Commerce Cloud, Magento (Adobe) and BigCommerce.
The company has offices around the world, including New York, London and Tel Aviv, and is supported by investors including Bessemer Venture Partners, Tiger Global, Claltech Investment, Coin Ventures, Hanaco, Vertex Ventures and Vintage Investment Partners.