Mobile marketing retention company Optimove has raised $20 million from Israel Growth Partners, a private equity investment firm that focuses on later stage investments. The platform helps businesses keep the customers they already have, by targeting them with special messages through predictive micro-segmentation technology.
This is the first funding round for the nearly eight-year-old company, after three straight years of 100% year-over-year growth. According to a blog post from Pini Yakuel, Founder and CEO, Optimove chose growth funding over previous VC options to “change our velocity, not our nature.”
The funds raised will be used to further invest and grow Optimove’s R&D, sales and marketing, and to hire aggressively in the U.S. market, especially for the company’s recently opened New York office.
Used by more than 200 companies, including 1-800-FLOWERS.com, Zynga and eBags, Optimove’s Customer Marketing Cloud currently sends more than 4 billion targeted, personalized messages to over 900 million customers every year through email, Facebook, Google Ads, SMS, push notifications, and other channels. Optimove currently employs more than 100 people in offices in New York, London and Tel Aviv.