Klaviyo, a marketing automation company headquartered in Boston, is focused on transforming how marketers utilize data, providing them with direct control over their information and customer relationships. The company posits that this approach streamlines message personalization and enhances overall campaign effectiveness. This vision has resonated with investors, resulting in a recent $200 million Series C funding round that values the company at $4.15 billion.

Accel spearheaded the investment, with participation from Summit Partners. This latest funding follows a $150 million Series B round completed last year, bringing the company’s total funding to $385.5 million, as stated by Klaviyo. As part of the agreement, Ping Li from Accel will be joining the company’s board of directors.

The importance of marketing automation and communication is particularly pronounced in the current environment, as businesses seek impactful ways to connect with customers who are unable to visit physical locations. According to CEO and co-founder Andrew Bialecki, his company’s distinctive data utilization capabilities are key to achieving this.

“Our success stems from being a combined customer data and marketing platform,” Bialecki explained. “We concentrate on creating personalized customer experiences. These experiences require comprehensive customer data – not just a portion of it – and that data must be seamlessly integrated with the process of building those experiences.”

“Alternatively, businesses can grow through platforms like Amazon, Facebook, or Google, but that often means surrendering control of their customer data,” he noted. “With Klaviyo, companies retain ownership of their data, and Ping Li, leading the investment at Accel, believes this aligns with the future of the e-commerce landscape.”

“The central question is whether there’s a tool that allows businesses to connect with customers as easily as they can through Facebook and Google, and I believe Klaviyo is delivering on that promise,” Li stated. He anticipates that this will foster stronger customer relationships by enabling direct communication, bypassing third-party intermediaries.

The company has already achieved considerable growth, serving 50,000 customers across 125 countries, a figure that has doubled year-over-year, even amidst the economic challenges presented by the pandemic.

Currently, Klaviyo employs 500 individuals and intends to expand its workforce to 1,000 in the coming year. Bialecki emphasizes the importance of diversity, viewing it not only as a matter of principle but also as a strategic business advantage. “I believe that the competitive edge for tech companies, particularly those aspiring to become leaders in the future, will be rooted in their diverse teams and inclusive cultures, both of which are key priorities for us,” he said.

With this new funding, the company plans to continue enhancing its platform, providing customers with increasingly detailed insights into their customer base and facilitating more impactful interactions. “Our focus is on accelerating product development and expanding into new markets,” Bialecki explained. “We now have the resources to pursue these goals effectively.”