Brevo Raises $583M to Disrupt CRM Market | Unicorn Funding

Brevo Achieves Unicorn Status with $583 Million Funding Round

Paris-based customer relationship management (CRM) firm, Brevo, has reached a significant milestone, attaining a valuation exceeding $1 billion. This achievement follows a recent funding round where the company secured €500 million in new equity, equivalent to $583 million.

The capital injection is strategically earmarked to bolster Brevo’s competitive position against industry giants like HubSpot and Salesforce, not only within the European market but also directly within the United States.

From Email Marketing to Comprehensive CRM

Initially founded in 2012 as Sendinblue, the company began as an email marketing solution tailored for small businesses.

Over time, Brevo broadened its scope, extending its services to the mid-market segment and undergoing a rebranding to reflect its expanded product offerings.

This strategic shift has proven successful, resulting in a customer base exceeding 600,000, encompassing both individual entrepreneurs and large corporations such as Carrefour, eBay, and H&M.

U.S. Market Expansion is a Key Priority

Currently, the U.S. market accounts for 15% of Brevo’s total revenue, ranking among its three largest markets alongside France and Germany.

However, CEO Armand Thiberge envisions a more substantial presence, aiming for the U.S. to contribute 50% of the company’s revenue.

“Given that the U.S. represents half of the global market, it is logical that it should also represent half of our revenue,” Thiberge stated in an interview with TechCrunch.

Impressive Revenue Growth Trajectory

Beyond U.S. expansion plans, Brevo is demonstrating strong financial performance.

Having joined the “centaur club” in 2023 by surpassing $100 million in annual recurring revenue (ARR), the company has exceeded its target of achieving €200 million in ARR by 2025.

Brevo now anticipates reaching €1 billion in ARR by 2030, as revealed to TechCrunch.

Comparing to Industry Leaders

While ambitious, Brevo’s revenue goals remain significantly lower than those of Salesforce, which is projecting $41.55 billion in revenue for 2026.

The company believes its newly acquired unicorn status will enhance its visibility and attract further investment, supplementing existing debt financing.

Brevo reports maintaining a “double-digit EBITDA margin.”

Investment in AI and Strategic Acquisitions

Brevo has already committed to investing €50 million in artificial intelligence (AI) over the next five years.

The company also intends to continue its growth strategy through acquisitions, having already completed 11 to date.

The new funding will support both AI development and acquisition efforts, alongside the planned expansion into the U.S. market, with over €100 million allocated to this initiative.

Cap Table Details and Ownership Structure

While the precise valuation resulting from the latest funding round remains undisclosed, Brevo has provided details regarding its updated capitalization table.

Contrary to earlier reports of a potential acquisition, Brevo’s management and employees retain the largest ownership stake at 26%.

New investors, General Atlantic and Oakley Capital, each acquired a 25% share, while existing investors Bpifrance and Bridgepoint collectively hold 24%, and Series A lead Partech has exited its position.

A Global Vision for a European CRM Leader

This global cap table reflects Brevo’s ambition to establish itself as a leading European CRM provider capable of competing with U.S.-based companies through product innovation.

The company emphasizes a focus on product excellence rather than leveraging European sovereignty arguments.

According to Thiberge, “Success hinges on having the superior product – one that is both comprehensive and user-friendly.”

Serving a Diverse Customer Base

Balancing the needs of mid-market companies and small businesses presents challenges, but Brevo believes this combination has been key to its success.

The company has significantly expanded its offerings beyond its initial email marketing roots.

Brevo now provides an all-in-one platform encompassing marketing automation, CRM, customer data management, and multi-channel communication, including email, SMS, WhatsApp, live chat, push notifications, and integrated sales calls.

AI Integration and Future Acquisitions

These functionalities are increasingly enhanced by AI, through both integrations and in-house development.

Acquisitions will continue to play a crucial role in Brevo’s growth strategy, with inorganic growth expected to contribute 45% of its €1 billion revenue target for 2030.

Consequently, the company anticipates an extensive list of potential acquisition targets.

(Note: This story has been updated to reflect accurate cap table information.)