To improve the solutions available on its e-commerce technology platform, Shopify is expanding its partnerships. Klaviyo, a leading client platform, has raised a $100 million investment, according to filings with the U.S. Securities and Exchange Commission. Klaviyo notably provides tools for automatically sending emails.
Boston-based Klaviyo was established in 2012, and integrates with existing platforms like Octane AI, Recharge. This is intended to automate the sending of e-mails and SMS to customers. With Klaviyo, businesses can take advantage of a range of predictive analytics models and tools. That is, these tools can set triggers for abandoned cart messages, product recommendations, etc.
There is no shortage of competition in the means of marketing automation (see Sendlane, Sendinblue and Cordial, among others). But Klaviyo has done a great job of reaching over 100,000 paying customers, including Unilever, Dermalogica, Solo Stove and Citizen Watches.
Klaviyo, with over 1,000 employees, has raised $775 million to date. Investors like Counterpoint Global, Sands Capital, Accel, and Summit Partners valued the startup at $9.5 billion in May 2021.
Klaviyo and Shopify Announce Strategic Partnership
Shopify has a strategic partnership with the Klaviyo customer relationship platform. The collaboration was announced on August 2, 2022, alongside Shopify’s investment in Klaviyo, to highlight this long-term partnership. The investment amounted to 100 million dollars.
As part of this collaboration, Klaviyo will be an advisory partner for the Shopify Plus messaging solution. Indeed, it is a program dedicated to merchants who make big sales. It’s also a plan for merchants that provides additional features, scalability, and support on top of the base Shopify product.
Additionally, Klaviyo will have early access to new Shopify Evolution features. This transaction will allow Klaviyo and Shopify to advance the development of key new technologies for online marketing designed to help merchants adapt to recent market changes. Since Klaviyo is already a leading solution in the Shopify app store. So this partnership will further increase the opportunities for merchants to deepen their relationships with customers.
“We’ve worked closely with Shopify for years and this is a great next step. I spoke several times with their product team and their CEO. They are strong believers in our mission to empower creators and they have a great deal of respect for the products we have created and for our customer- and product-focused culture. Shopify has been key to our growth and a great team to work with and we’re thrilled it’s helping us move faster to help more of their customers. said Andrew Bialecki, CEO of Klaviyo.
Investments to expand Shopify’s reach
With this cooperation, Shopify is clearly seeking to enrich the range of its solutions. The e-commerce platform is not the first attempt. Last May, it bought startup Deliverr for $2.1 billion, its biggest acquisition.
In terms of their goals, Shopify’s investments last year were directed towards recommendation and marketing technology. The e-commerce giant threw in the cash and formed a partnership with Yotpo last September. The latter provides consumer sellers with marketing tools and products. So, Shopify recently invested some money in Crossing Minds. It’s a startup offering a platform that offers “personalized experiences” seemingly without the use of personal data.
Shopify is certainly under pressure to better manage what could be a prolonged recession. Last month, the company laid off 10% of its workforce (around 1,000 employees) in what CEO and founder Tobi Lütke said was a big move to users abandoning online ordering. In the second quarter of 2022, the company announced a net loss of $1.2 billion. To that end, she warned shareholders on a conference call last week that inflation is likely to hit earnings for the full year.