Shopify makes $100M strategic investment in marketing automation startup Klaviyo

According to documents filed with the U.S. Securities and Exchange Commission, Klaviyo has received a $100 million investment fromshopify Klaviyo will be made the recommended email product forshopify's premium merchant plan, Shopify Plus, while giving Klaviyo early access to in-developmentshopify features.

The CEO of Klaviyo said that this is a great next step for them. They are big believers in our mission of empowering creators and they have a lot of respect for the products we have built and our customer-first culture. We're excited that this will help us go faster in helping more of their customers, because we've been key to our growth and a great team to work with.

Klaviyo integrates with existing platforms to automate the sending of email and text messages to customers. Businesses can use Klaviyo to set up Triggers for messages about abandoned carts, product recommendations and more.

There are plenty of competitors in the marketing automation tech space. Over 100,000 paying customers have been reached by Klaviyo.

Klaviyo has raised $775 million so far. The startup was valued at $9 billion by investors in May 2021, according to a report.

Klaviyo is the latest in a string of acquisitions that aim to broaden the reach of the e- commerce platform. The purchase of Deliverr by Shopify was the largest acquisition in the company's history. Following an equity pledge in Sanity, Shopify invested in Single, a music and video app for businesses on the platform.

The past year of investments has leaned in the direction of recommendations and martech. Money was put toward and entered into a partnership with Yotpo in September of last year. A startup offering a platform that delivers personalized experiences without using personal data has received capital from the e- commerce giant.

It is likely that the economic downturn will last for an extended period of time. The company laid off 10% of its workforce last month in response to users pulling back on online orders and reverting to old shopping habits. During a call last week, the company warned shareholders that inflation would hurt earnings throughout the rest of the year.