Tailor Brands, a startup that automates parts of the branding and marketing process for small businesses, announced Thursday it has raised $ 50 million in Series C funding.
GoDaddy led the cycle as a strategic partner and was joined by OurCrowd and existing investors Pitango Growth, Mangrove Capital Partners, Armat Group, Disruptive VC and Whip Media founder Richard Rosenblatt. Tailor Brands has raised a total of $ 70 million since its inception in 2015.
“GoDaddy empowers everyday entrepreneurs around the world by providing them with all the help and tools they need to be successful online,” said Andrew Morbitzer, vice president of corporate development at GoDaddy, in a written statement. “We are thrilled to invest in Tailor Brands – and their team – because we believe in their vision. Their platform really helps entrepreneurs start their business quickly and easily with AI-powered logo design and branding services. “
When Tailor Brands, which launched at TechCrunch’s Startup Battlefield in 2014, raised its final round, a $ 15.5 million Series B, in 2018, the company focused on creating logos based on the ‘IA.
The company, headquartered in New York and Tel Aviv, is currently compiling the components of a one-stop SaaS platform – providing the design, branding and marketing services that a small business owner has needs to launch and scale its operations, and within minutes, Yali Saar, co-founder and CEO of Tailor Brands told TechCrunch.
Over the past year, more and more users have flocked to Tailor Brands; the company onboard some 700,000 new users per month to help them in the early stages of building their business. In fact, the company has seen a 27% increase in new business incorporations as the creator and concert economy gained ground in 2020, Saar said.
In addition to dozens of new users, the company crossed paths with 30 million businesses using the platform. At the end of 2019, Tailor Brands began to monetize its offerings and “has grown at an astounding rate,” Saar added. The company recorded triple-digit annual revenue growth.
To support this growth, the new funding will be used for R&D, to double the team and create additional capabilities and functions. There could also be future acquisition opportunities on the table.
Saar said Tailor Brands is at a point where it can start leveraging the massive amount of small business data it collects to help them be proactive rather than reactive, turning the platform into something of a “Consultant” to guide clients through the next steps of their businesses.
“Users are asking us to provide everything to them, so we’re starting to incorporate more products with the goal of creating an ecosystem, like WeChat, where you don’t have to leave the platform at all to run your business,” Saar mentioned.