Klaviyo, a customer data and marketing automation platform, has announced that it has raised a $320 million Series D round of funding.
In addition to the company's $200 million Series C financing in November 2020, this new financing puts the company value at $9.15 billion on a pre-money basis. It also brings Klaviyo's total funding to date to over $675 million. This latest round was led by new investor, Sands Capital. Other new investors in the platform include Counterpoint Global (Morgan Stanley), Whale Rock Capital Management, ClearBridge Investments, Lone Pine Capital, Owl Rock Capital, Glynn Capital, and Keith Block (former co-CEO of Salesforce), with participation from existing investors Accel and Summit Partners, according to a press release.
Klaviyo's platform aims to provide data analytics by applying AI and machine learning to pull in customer data. From there, the platform generates audience insights while it automates and customizes relevant communications, advertising and marketing campaigns. Klaviyo's software integrates with prominent ecommerce platforms like Shopify, Magento, BigCommerce, Stripe, and WooCommerce.
"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," said Andrew Bialecki, co-founder and CEO of Klaviyo in a press statement. "There's a different way to grow, where you can be an independently successful business without relying on the big ad platforms and marketplaces."
As the company has expanded its offerings to include SMS and benchmarking, the platform now acts as an infrastructure for businesses or organizations to deliver personalized experiences at scale through software.
"Email and SMS are the most direct channels there are," continued Bialecki. "We believe that at the end of the day, owning relationships with consumers will help businesses become closer to their customers, more durable, and more profitable. And that's not only a better way of doing business -- it's the next era of digital relationships. The next 20 years will be defined by owned relationships -- not third parties."
With a client base that has doubled over the past 12 months, the company now serves over 70,000 paying customers.
Klaviyo plans to use the latest funding to expand through product development, increased marketing and sales, and expansion into new international regions and verticals. The company plans to hire 500 more employees this year. The funding also allows the company more flexibility to evaluate other opportunities that align with its mission and vision for the future.