Optimove Raises $75 Million for Scaling Personalization


Optimove Team (company PR pic)

Optimove is an Israeli startup that offers a Customer Service Management (CRM) marketing service. The company is celebrating the end of the Sukkot holiday with a $75 million cash investment, led by global growth investor Summit Partners. Optimove also announced the addition of Summit Partners’ Managing Director Steffan Peyer, and Head of Europe, Han Sikkens to its Board of Directors.

This marks Summit Partners’ first Israeli investment.

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Founded in Tel Aviv in 2012, Optimove explains that its Software as a Service (SaaS) technology combines a Customer Data Platform (CDP) with a Multichannel Marketing Hub (MMH) to “uniquely empower brands to personalize campaigns and communicate to existing customers.” The software’s AI element, declares the company, enable it to scale this personalization to serve each customer with the optimal message and promotion, across websites, email, Facebook, Google Ads, text messages, push notifications, and other channels.

According to Gartner’s Market Share Analysis: Customer Experience and Relationship Management Software Worldwide, the multichannel marketing market reached $10 billion and is growing at a 17% Compound Annual Growth Rate CAGR.

“In the last 18 months digital consumption grew like never before. The cost of acquiring new customers has skyrocketed, and brands understand today that they must invest in their existing customers in order to drive growth,” said Optimove Founder and CEO, Pini Yakuel. “We see more and more brands facing a new challenge when attempting to scale their personalization. We built Optimove to solve that challenge and offer marketing teams direct access to their customer data, the ability to build, test and optimize their CRM campaigns, and leverage our AI engine to assure every customer receives the message of highest impact on their lifetime value, through the optimal channel, at any given time.”

“Israel is producing more unicorn valuations than any other country in Europe and there’s been an uptick in its activity on the public markets as well, so it has had our attention for a while,” said Steffan Peyer, a Managing Director at Summit Partners who will join the Optimove Board of Directors. “Optimove emerged for us as the leader in the rapidly-growing CRM market for the strength of its technology, its strategy and executive team. Under Pini’s leadership Optimove is poised to take the lead on market consolidation and growth.”

Optimove revenue grew 35% over 2020, driven by more than 500 brands using its platform. Customers span e-commerce, gaming, retail, QSR, telecommunications, financial services, and apps and include: BetMGM, Dollar Shave Club, Papa John’s, Pennsylvania Lottery, Staples, Sweaty Betty, and Varsity Tutors.

Optimove’s CRM Marketing platform sends an average of more than 23 billion optimized messages to over 3 billion customers every year. Optimove is integrated with leading technology platforms, such as Snowflake, Shopify, Salesforce Commerce Cloud, Playtech, SBTech, alongside leading execution channels, including Facebook, Google Ads, Criteo, Attentive, and Klaviyo