The Enduring Power of Email Marketing and Klaviyo's Rise

Despite its long history, email marketing remains a remarkably resilient and effective channel. Several email marketing companies have achieved sustained success over the years, including established brands like Constant Contact and Mailchimp.

These companies frequently attain widespread recognition, as evidenced by their logos appearing on the footers of countless emails received by consumers.

Klaviyo's Rapid Growth and Funding

Klaviyo, while not yet a universally recognized name, is rapidly ascending as a leading force in the next generation of email marketing platforms.

The company recently announced a new funding round of $320 million in Series D financing, spearheaded by Sands Capital, an investment firm with a strong focus on ecommerce.

This latest investment brings Klaviyo’s total funding to $675 million, building upon a $200 million Series C round secured just six months prior.

A Deep Dive into Klaviyo's Strategy

Klaviyo was recently the focus of an in-depth EC-1 analysis. This analysis explored the company’s growth trajectory, its role in revitalizing “owned marketing” strategies – focusing on channels businesses control, like email – and how marketers are leveraging Klaviyo in the post-COVID landscape.

Furthermore, the analysis highlighted valuable startup growth lessons derived from Klaviyo’s business model.

The complete analysis spans nearly 10,000 words, offering a comprehensive understanding of Klaviyo’s story and its position within the broader email marketing sector.

The Key to Klaviyo's Success

Klaviyo’s success can be attributed, in part, to its proficiency in marketing itself. This has enabled the company to attract a substantial number of new customers, particularly as retailers and traditional businesses transitioned to online operations during the COVID-19 pandemic.

According to the company’s official statement, Klaviyo’s customer base has doubled in the last year, now serving over 70,000 paying customers.

This represents a growth exceeding 110% since 2019, encompassing businesses ranging from small enterprises to Fortune 500 corporations across more than 120 countries.

Expansion and Future Plans

Klaviyo intends to significantly expand its workforce, increasing its headcount from 800 to 1,300 employees throughout the current year.

Headquartered in Boston, Klaviyo’s near-decacorn valuation represents a significant achievement for the Boston technology ecosystem, which continues to thrive.

Investors in the Series D Round

In addition to Sands Capital, the Series D round included participation from Counterpoint Global, Whale Rock Capital Management, ClearBridge Investments, Lone Pine Capital, Owl Rock Capital, and Glynn Capital.

Existing investors Accel and Summit Partners also contributed to this funding round.

Klaviyo is poised to continue its growth and innovation in the email marketing space.