To improve the solutions available on the e-commerce technology platform, Shopify is expanding partnerships. According to filings with the US Securities and Exchange Commission, Klaviyo, a leading client platform, has raised a $100 million investment. Klaviyo, in particular, provides tools for automatically sending emails.
Klaviyo from Boston was created in 2012 and integrates with existing platforms such as Octane AI, Recharge. This is designed to automate the sending of emails and SMS to clients. 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, and so on.
There is no shortage of competition in marketing automation tools (see Sendlane, Sendinblue, and Cordial, among others). But Klaviyo has done a great job reaching over 100,000 paying customers including Unilever, Dermalogica, Solo Stove and Citizen Watches.
Klaviyo, which has over 1,000 employees, has raised $775 million to date. Investors such as 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 customer experience platform Klaviyo. The collaboration was announced on August 2, 2022, along with Shopify’s investment in Klaviyo, to highlight this long-term partnership. Investments amounted to 100 million dollars.
As part of this collaboration, Klaviyo will become a consulting partner of the Shopify Plus messaging solution. Indeed, this is a program designed for sellers who make big sales. It’s also a merchant plan that provides additional features, scalability, and support on top of the basic Shopify product.
In addition, Klaviyo will get early access to the new features of Shopify Evolution. This deal will allow Klaviyo and Shopify to accelerate the development of key new online marketing technologies designed to help merchants adapt to the latest market changes. Since Klaviyo is already a leading solution in the Shopify app store. Thus, this partnership will further enhance the ability of sellers to deepen relationships with buyers.
“We have worked closely with Shopify for many years and this is a great next step. I spoke with their product team and CEO several times. They strongly believe in our mission to empower creators and have great respect for the products we’ve built and our customer- and product-centric culture. Shopify has been key to our growth and a great team to work with, and we’re thrilled that it’s helping us move faster to help more of their customers. said Andrew Bielecki, CEO of Klaviyo.
Investments to expand the reach of Shopify
With this collaboration, Shopify is clearly looking to enrich its range of solutions. The e-commerce platform is not the first attempt. Last May, he bought startup Deliverr for $2.1 billion, his biggest ever acquisition.
In terms of goals, Shopify’s investment last year was focused on referrals and marketing tech. The e-commerce giant invested and partnered 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 a “personalized experience” apparently without the use of personal data.
Shopify is certainly under pressure to better handle what could be a protracted recession. The company laid off 10% of its workforce (about 1,000 employees) last month, which CEO and founder Toby Lütke said was a big step in getting users to stop ordering online. In the second quarter of 2022, the company posted a net loss of $1.2 billion. To that end, she warned shareholders on a conference call last week that inflation was likely to hit earnings for the full year.