Sendlane Raises $20M to Boost Customer Loyalty

Sendlane Secures $20 Million in Series A Funding

Sendlane, a multichannel marketing automation platform headquartered in San Diego, California, announced Thursday that it has successfully raised $20 million in a Series A funding round.

This investment, which included participation from Five Elms Capital and other investors, brings the company’s total funding to $23 million since its inception in 2018.

Company Origins and Early Development

Despite officially launching three years ago, co-founder and CEO Jimmy Kim revealed to TechCrunch that the initial concept for Sendlane was conceived as early as 2013, alongside two other co-founders.

These individuals, all experienced email marketers from diverse business sectors, shared a common frustration with the available email marketing tools. Existing solutions were either inadequate or prohibitively expensive for small businesses, prompting them to envision a more suitable platform.

Their goal was to develop an email marketing automation system capable of handling more than just standard email campaigns and newsletters.

Transition to E-commerce Focus

Following successful exits from two prior ventures in 2017, Kim dedicated his full attention to Sendlane, aiming to build a system that would maximize revenue through data-driven insights and seamless integrations.

Late in 2018, the company secured seed funding from Zing Capital and subsequently made a strategic decision in 2019 to concentrate on the e-commerce market.

“Our collective experience and observations of our client base led us to recognize this as our area of expertise,” Kim explained.

Current Platform Capabilities and Growth

Currently, over 1,700 e-commerce businesses utilize Sendlane’s platform.

The platform transforms customer data – including abandoned carts, top-selling products, and effective marketing channels – into personalized communications designed to foster customer loyalty.

Sendlane reports that its customers typically experience a revenue increase ranging from 20% to 40%.

The company is experiencing substantial growth, with a 100% year-over-year increase and exceeding $7 million in annual recurring revenue.

Future Expansion Plans

With a current workforce of 54 employees, Sendlane anticipates expanding to approximately 90 employees by year-end and 150 by the close of 2022.

The company currently has over 20 positions open.

This anticipated growth served as a key motivator for pursuing the Series A funding.

Sendlane achieved profitability last year, which explains its relatively modest fundraising efforts to date.

However, Kim recognizes the increasing competition within the rapidly evolving e-commerce landscape and aims to proactively prepare for future challenges.

Competitive Landscape and Differentiation

Kim identifies companies such as ActiveCampaign and Klaviyo as direct competitors.

However, he emphasizes that Sendlane distinguishes itself through its exceptional customer service, characterized by minimal wait times and rapid response times – often resolving inquiries in under 15 seconds.

The company is also focused on unifying data and insights to facilitate more impactful interactions between customers and retailers.

Vision for the Future

“Our ambition is to establish a new standard in the industry,” Kim stated.

“We are developing a range of innovative products over the next 12 to 18 months, with the goal of becoming the primary source for customer journey data insights, offering businesses the flexibility they need to thrive.”

Two forthcoming tools include Audiences, designed to consolidate customer data and deliver actionable insights, and an SMS product enabling two-way communication and campaign-level sending capabilities.