Email Business SparkPost, Used by Adobe, Pinterest, Twitter, and Booking, Raises $180 Million

By Mariliana Fotopoulou | Thursday, 28 January 2021 | Startup, Business, Finance

Sparkpost, a company that provides email infrastructure, said it has raised $180 million in the latest funding round from its investors LLR Partners, NewSpring Capital, and PNC Bank.

Funds to be Used for Strategic Growth Investment

The IT startup secured about $94 million in the previous round, and with its newly-raised funds, the business will invest in innovation and growth of its existing customer base, including major clients like Zillow, Adobe, Pinterest, Twitter, the New York Times, Booking.com, Rakuten, and Zynga.

"We achieved the Rule of 40 in the third quarter of 2020 and we continue to perform at this level into the new year. SparkPost's strong results made this growth financing possible," said Rich Harris, chief executive of the company

SparkPost is a software company that offers businesses thorough insights into their email campaigns, including execution rate and engagement. The company additionally provides them with the necessary data and analytics to watch bounce rates, ISP responses, spam traps, and more.

The research showed that around 80% of enterprises will continue using email as its primary means of communication, even though the messaging platforms industry which includes companies like Slack, Microsoft Teams, and others have seen outstanding growth over recent years.

The coronavirus pandemic has pushed companies, startups, businesses, and organizations to focus more on using digital communications, and SparkPost business is one of the companies that managed to help clients scale email channel efforts while providing outstanding performance.

"Email has proven to be the most cost-effective and reliable marketing and customer engagement channel," said David Reuter, partner at LLR Partners.

"Rich and the entire SparkPost team have built impressive momentum throughout 2020 and our investment will help support company growth and its position as a leader in the enterprise email marketing space. We are thrilled to be a part of their journey to help deliver tangible value and customer success to enterprises globally."

The interest in email technology startups keeps rising. For example, software vendor and cloud service company Exclaimer secured $133 million last month to help businesses manage their email signatures.

Summary

Email intelligence business SparkPost has raised $180 million in a new round, backed by its investors LLR Partners, NewSpring Capital, and PNC Bank.

About the Author

Mariliana Fotopoulou

Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.