Rapid Growth Rewarded With a Mega Fundraiser
The latest funding round comes after online businesses have benefited from the COVID-19 pandemic. This resulted in the emergence of what is known as the “knowledge economy,” which contains business coaches, trainers, podcast and newsletter makers, and more.
The number of mega-rounds in the market has been on the rise, with Tiger Global leading or participating in several, including the financing rounds of Clubhouse, chipmaker Groq, and fintech startup company Brex.
Kajabi, founded in 2010 in Irvine, California, is an all-in-one platform that offers a subscription-based business service to those who are looking to monetize their expertise. The company provides them with solutions for creating websites, online classes, podcasts, and more.
The startup company has helped these entrepreneurs generate over $2 billion in sales from nearly 50 million customers to date, it said.
“The addition of our new investors validates Kajabi’s mission of empowering knowledge entrepreneurs who are serious about achieving success online with their business,” Chief Executive of the ecommerce startup business, Kenny Rueter, said.
The startup company will use the new proceeds to maintain its hyper-growth and for potential business acquisitions. Kajabi has experienced rapid growth. The company has seen seasoned business owners and new knowledge entrepreneurs use the ecommerce platform and generate over $1.5 billion in gross merchandise value (GMV) annually, which has resulted in a surge of more than 150% in 2020.
Furthermore, the startup has witnessed its employee numbers quadruple since the start of 2019 and more than double in size last year.
Rueter adds that the key to his company’s success lies in the all-in-one platform which enables knowledge entrepreneurs to create and grow their businesses. Products developed by the ecommerce startup eliminate the need to use multiple software, helping its business customers save time and money.
Along with the significant expansion of the so-called knowledge economy, many have been looking to fulfill their professional and casual learning needs on the internet, which has given rise to countless opportunities for knowledge entrepreneurs. Kajabi developed a platform for these entrepreneurs that allows them to leverage the knowledge economy and monetize their skills.
“Kajabi has pioneered the exploding knowledge economy and has built a fantastic product suite and all-up experience to power knowledge entrepreneurs across a host of industries including business and finance, marketing, personal development, and health and fitness, among many others,” said Scott Wagner, former chief executive of GoDaddy and Tidemark Advisor, who will be joining the board of directors of the startup company.
Wagner praised the startup for its “special” customer-first approach, which has been the core of the ecommerce business since its founding.
Kajabi, a US-based ecommerce startup company, said it secured $550 million in a mega-round led by Tiger Global Management, bringing the company’s business valuation to more than $2 billion.
About the Author
Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.