Shopify invests $100M in Strategic Partnership with Klaviyo

Shopify ecommerce store giant has come into a relationship with ecommerce marketing automation platform Klaviyo. Under the same deal, the latter firm has received an investment of $100M from Shopify. The announcement has been made with the statement that Klaviyo and Shopify are set to strengthen their existing partnership. After this strategic partnership, Klaviyo will be the recommended email product for Shopify’s premium merchant plan, Shopify plus. Moreover, Klaviyo will be receiving early access to in-development features of Shopify. 

Klaviyo was founded in 2012 and helps their clients to know their customers better and thus take the steps accordingly. The integration of Klaviyo in the businesses helps automate sending emails and texts to the customers regarding any follow-up or query. Stores and firms can inform customers about their abandoned carts, product recommendations, new deals, and much more by taking support of their analytical tools.

We’ve been working closely with Shopify for years, and this is a great next step

Klaviyo CEO Andrew Bialecki told TechCrunch via email.

I’ve talked with their product team and CEO many times — they’re big believers in our mission of empowering creators and they have a lot of respect for the products we’ve built and our customer-first, product-led culture. Shopify’s been key to our growth and a great team to work with and we’re excited that this will help us go faster in helping more of their customers.

The performance of Klaviyo in recent years has also been incredible. Despite massive competition in the industry, the company has managed to reach 100,000 customers, which include firms like Unilever, Solo Stove, Dermalogica, and Citizen Watches. With an employee base of more than 1000, the firm has raised around $775 million so far. 

Moreover, Shopify could also be seen making several investments in recent years. In May, the firm snapped up the shipping logistics startup Deliverr for $2.1 billion. It has been the biggest purchase by the firm till date. Moreover, firm also invested in Single, a video and music app popular to be used by many businesses on Shopify. The deal was following an equity pledge in CMS developer Sanity.