The investment by Shopify, which has a market cap of $185 billion on the NYSE, is part of a strategic investment between Yotpo and Shopify, "to develop innovative marketing solutions that help brands deepen customer relationships." The announcement about the strategic partnership did not disclose details about Shopify's investment but sources close to the matter said that the amount of the investment is $30 million.
This brings to $436 million the total amount raised by Yotpo since it was founded. In March 2021 the company raised $230 million at a company valuation of $1.4 billion.
Yotpo was founded by CEO Tomer Tagrin and COO Omri Cohen.
Tagrin said: "This new platform partnership is a significant milestone in our company journey, in our longstanding relationship with Shopify, and in service to our customers. With the last year’s addition of SMS marketing to the Yotpo platform, we now have five cutting-edge products available to Shopify merchants. We look forward to working even more closely with Shopify to provide smarter, more connected experiences that create real value for our mutual customers.
He added, "Our two companies share a common belief that, for the future of commerce to thrive, merchants must be able to own direct relationships with their customers. This platform partnership directly responds to the enormous amount of time and energy merchants currently are required to spend competing for customer attention."