Yotpo Garners $50M in Round D Series, Bringing Total Funding to $101M

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The social media space has never been more crucial for online businesses.

Whether you like it or not, the integrity of your brand is at the mercy of the social community’s collective voice. And if you want to earn your audiences’ trust, then you need to establish social proof that your business is worthy of just that — their trust.

Yotpo, a user-generated content marketing service, offers one of the most effective solutions for establishing social proof.

As a testimony to how much value the company can bring to a business, Yotpo recently earned $51 million from a Series D round of funding.

How Yotpo Works

According to statistics, 85% of internet users believe that user-generated content (UGC) is more influential than branded content for purchase decisions. However, despite how powerful UGCs are, 50% of consumers stated that brands barely give enough guidelines for creating reviews and other types of content.

Yotpo solves this problem with features like personalized review requests, incentives, and reminders. The platform utilizes AI-powered technology to smartly present requests at key interaction points in the customer journey.

For example, the unique “Mail After Purchase” system automates an interactive review request whenever customers validate a purchase.

In addition to text-based reviews, users can also submit other forms of UGC such as images, Q&A posts, and star ratings.

“Yotpo is answering the growing demand for an integrated user-generated content platform,” says ClalTech CEO Daniel Shinar. “And they are becoming the next-generation marketing platform for B2C companies.”

ClalTech is the Israeli entity of Access Industries, a US-based holding company that spearheaded the latest financing round. They were joined by other existing investors, such as Bessemer Venture Partners, Marker LLC, Vintage Partners, Blumberg Capital, Rhodium and 2B Angels.

Vertex Ventures is a new investor that joined the round D series funding.

“We’ve been working with Yotpo since 2014,” added Shinar. “We have gained enormous respect for what co-founders Tomer Tagrin and Omri Cohen have built — a company with a unique culture and exceptional execution skills.

Benefits of Using Yotpo

By using Yotpo, brands can aggregate, analyze, and respond to all forms of UGC — from social media posts and full-length product reviews. Most importantly, it allows businesses to easily showcase them via a customizable display widget.

By highlighting positive reviews and user-generated photos in your storefront, you can build trust and buyer confidence in your brand, allowing your conversion rates to reach new heights.

“We’re living in a post-Amazon world where even big, established brands are collapsing because it’s impossible to compete with Amazon on price or fulfillment,” says Tomer Tagrin, CEO of Yotpo. “The only way commerce brands can win is through customer experience and building an authentic brand that people truly care and talk about.”

Tomer Tagrin (Right) along with Yotpo co-founder, Omri Cohen

Yotpo can also be used as a platform for obtaining customer feedback, which can help brands improve their customer service and make data-driven decisions in the future.

To make sure your social marketing and online selling fronts are streamlined, Yotpo fully supports third-party integrations such as Shopify, BigCommerce, Google, and a handful of major social networks.

Looking forward, the Yotpo team turns to artificial intelligence and machine learning as their primary frontiers for product development.

“For us, AI isn’t a buzzword, but a core technology already powering our solutions today,” says Tagrin. “We’re just touching the surface of the potential here, and we’ll have exciting news coming soon.”

Author: SocialNewsDaily


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