Email Marketing Startup Klaviyo Raises $320 Million, Now Valued at Over $9 Billion

By Mariliana Fotopoulou Tuesday, May 18, 2021

Klaviyo, a Boston-based email marketing startup company, announced today it has secured $320 million in a fresh business funding round led by a new investor Sands Capital.

The latest funding round also attracted participation from new backers including Morgan Stanley’s business investing arm Counterpoint Global, Whale Rock Capital Management, ClearBridge Investments, Lone Pine Capital, Owl Rock Capital, Glynn Capital, and former Salesforce CEO Keith Block, Existing investors Accel and Summit Partners also took part in the funding raised.

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The funding round took Klaviyo’s pre-money business valuation to $9.15 billion, while the total funding raised by the startup company has now soared to more than $675 million. Klaviyo previously raised $200 million in Series C last November.

The startup developed a customer data and marketing automation platform that provides data analytics and allows online companies to better develop their relationships with business customers. The platform utilizes machine learning and artificial intelligence (AI) technology to accumulate customer data, provide audience insights, and automate important email communication and marketing campaigns.

The technology developed by the startup can also integrate with other major ecommerce platforms, including Shopify, Magento, BigCommerce, Stripe, and WooCommerce.

At the start, Klaviyo was mainly focused on providing email marketing, data analytics, and messaging services to businesses but now its offerings have expanded much beyond that and include SMS and benchmarking.

"The bill of goods that's being sold is that you need third-party data and third-party infrastructure to be successful, and that's simply not true. There's a different way to grow, where you can be an independently successful business without relying on the big ad platforms and marketplaces," said Andrew Białecki, co-founder and chief executive of the startup company.

The number of Klaviyo’s business customers doubled over the past 12 months, with the email marketing startup company now counting more than 70,000 paying users, marking a 110% surge from 2019.

The Boston-headquartered startup said it will use the fresh capital to further its business growth by investing in product development, boosting marketing and sales, as well as hiring more employees and expanding overseas. Klaviyo’s workforce doubled in the past 12 months to 800 and the company said it plans to hire 500 more in 2021.

"Klaviyo has become the standard for how many online businesses are interacting with their customers, empowering an all-around better way of doing business and redefining what it takes for them to achieve independent success," said Michael Clarke, the managing director at Sands Capital.

In essence, the startup helps marketing staff to make their email messaging to business customers more personalized, appealing, and automated. This way, the company helps its clients to accelerate the customer connection. Some major companies, like Unilever, use Klaviyo’s products to foster direct relationships with customers.

For instance, the email marketing startup recently partnered with the ecommerce company WooCommerce to help entrepreneurs and businesses on the platform to analyze the data and obtain powerful insights that will help them further grow their sales.

Summary

Klaviyo has delivered another mega funding round to see its business valuation exceed $9 billion. The startup company raised $320 million to fund its further growth as it continues to rise from an ecommerce database into an email and marketing behemoth.

About the Author


Headshot of Mariliana Fotopoulou

Mariliana has an MSC in Consumer Analytics and Business Strategy. She has a special interest in fast-moving industries and Big Data.

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