Sendlane, a San Diego-based multi-channel marketing automation platform, announced Thursday that it has raised $ 20 million in Series A funding.
Five Elms Capital, Blueprint Equity and others have invested in the round to give Sendlane total funding of $ 23 million since the company was founded in 2018.
Although the company officially started three years ago, co-founder and CEO Jimmy Kim told TechCrunch he started working on the idea in 2013 with two other co-founders.
They were all email marketers in different industries, but had one thing in common: they all used email tools that they didn’t like. The ones they loved were too expensive for a small business, Kim said. They decided to create their own email marketing automation platform for customers who wanted to do more than email campaigns and newsletters.
When two other companies Kim was involved with left in 2017, he decided to put both feet in Sendlane to integrate it into a system that maximizes revenue based on insights and integrations.
At the end of 2018, the company attracted seed funding from Zing Capital and decided in 2019 to go into e-commerce. “Based on our personal history and looking at the clients we’ve worked with, we realized this is what we do best,” Kim said.
Today, more than 1,700 e-commerce companies use Sendlane’s platform to convert over 100 points of their customer data – abandoned carts, best-selling products and a functioning marketing channel – into engaging communications. aimed at retaining customers. The company said it can increase customer revenue between 20% and 40% on average.
The company itself is growing 100% year-over-year and has over $ 7 million in annual recurring revenue. It currently has 54 employees and Kim expects to be around 90 by the end of the year and 150 by the end of 2022. Sendlane currently has more than 20 open positions, he said.
This current and potential growth prompted Kim to seek Series A funding. He said Sendlane turned profitable last year, which is why he hasn’t raised a lot of money until now. However, as the rapid adoption of e-commerce continues, Kim wants to be ready for the next wave of competition to come, which he expects next year.
He considers companies like ActiveCampaign and Klaviyo to be Sendlane compliant, but says his business differentiator is customer service, with short wait times and chats that answer questions in under 15 seconds.
He’s also ready to pursue the next vision, which is to unify data and ideas to create meaningful interactions between customers and retailers.
“We want to start creating a new space,” Kim added. “We have a ton of new products coming out in the next 12-18 months and we want to be the one-stop source of customer journey data insights that provide the flexibility to grow your business. “
Two upcoming tools include Audiences, which will unify customer data and deliver insights, and an SMS product for two-way communications and campaign-level enabled sending.