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With $22m boost, Yotpo to expand workforce, operations

Start-up that provides user-generated content platform plans to hire in Tel Aviv and New York, and open 2 more offices

Shoshanna Solomon is The Times of Israel's Startups and Business reporter

Yotpo's staff at work. (YouTube screenshot)
Yotpo's staff at work. (YouTube screenshot)

Yotpo, an Israeli start-up that enables companies to generate online reviews and content, has announced the completion of a $22 million financing round led by Bessemer Venture Partners. The company also said it hired a new vice president, Jeff DiBartolo, formerly of Salesforce Marketing Cloud, and has added Bessemer partner Adam Fisher to its board.

“We will use this funding to hire an additional 250 people across our multiple offices and help us accelerate the company,” Yotpo Chief executive officer Tomer Tagrin said in an interview. The total amount of money raised by Yotpo to date totals $50 million, he said.

Yotpo helps firms create customer content by messaging users through email and SMS to get their reviews about a product they have purchased. It adds marketing features such as coupons, and enables customers to upload photos of themselves with the new product they have acquired.

“One of the biggest problems today is to float above the noise,” Tagrin said. “There are so many customer platforms, including Twitter, Facebook, email marketing, Pinterest, Snapchat and Instagram. The way forward is to create content from customers and to make it unique. Our platform helps companies get content from customers, including reviews, images and videos, and we help them market and distribute their content in a smart way.”

After revenue, number of customer and amount of content collected saw a “triple digit” jump year on year, according to company data, Yotpo is now eyeing enterprise businesses as its next target.

“We are servicing 150,000 companies worldwide including Staples, Red Bull and GoPro,” Tagrin said. “Until now we had mid-size customers. Now we want to enter the enterprise market. The money we raised will help us double down on our enterprise customers.”

Omri Cohen (left) and Tomer Tagrin (right) co-founders of Yotpo (Courtesy)
Omri Cohen (left) and Tomer Tagrin (right), co-founders of Yotpo (Courtesy)

Yotpo plans to increase its workers in Tel Aviv by 100 and double the number of its New York employees to 100. It also has plans to open two additional offices “in EMEA [Europe, the Middle East and Africa] and another location in the US,” he said.

“With this funding, we’ll be able to build out our platform to include more features, more integrations and more forms of user-generated content,” Tagrin said in an emailed statement. “In the upcoming months, we’ll begin our global expansion with multiple offices outside the US and Israel. This funding also gives us the option to explore strategic acquisitions.”

Yotpo also saw “significant participation in the funding round” from existing investors, Innovation Endeavors, Marker LLC, Vintage Investment Partners, Blumberg Capital and Access Industries alongside other angels, the company said in a statement.

“Yotpo is answering the need many enterprise businesses have to collect and amplify content from their customers as a means of increasing traffic, trust and sales,” Bessemer’s Fisher said in the statement. “We’re excited to join Yotpo’s team as they expand globally and across the enterprise market.”

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