Sunday, October 2, 2022

Postscript Raises $35 Million to Give Shopify Stores SMS Superpowers

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Postscript is a service that enables Shopify merchants to maintain communication with their customers by text message. The service emphasizes maintaining opt-in contact, being legally compliant, and preventing spam.

At the end of 2019, the firm announced that it had successfully raised $4.5 million; this morning, the company is reporting that it has successfully secured $35 million for its Series B according to kumparaktechcrunch.

Over the last year, the firm has expanded at a relatively quick rate. In December of 2019, when we last checked in with them, they had 14 workers and around 530 clients; as of now, they have 61 employees and more than 3,500 customers.

Over the last year, they have also developed a little more refined vision for the product. Initially envisioned as more of one-way broadcasting for Shopify stores to market to existing customers (“Look! We’ve got new shoes in stock!”), they are now working on expanding into more two-way interactions, enabling customers to do things like re-ordering, subscription management, and reviewing products through SMS.

As was the case before, Postscript is only compatible with shops that use Shopify. In the background, they have been developing an API that will enable deeper integrations with other Shopify plugins, but for the time being, their focus is only on Shopify merchants.

Alex Beller, one of the Co-Founders of Postscript, has informed me that “we’re still focused solely there.” Since we go so deeply into the data and the ecosystem, we believe that it is a type of “secret sauce” we have developed. There are just a significant number of marginal benefits that add up over time. Because it is also the platform that is expanding at the highest rate in the realm of e-commerce, it has proven to be a beneficial location.

Personalized Text to Customers

Postscript, a business specializing in SMS marketing, has successfully secured $65 million as part of its Series C fundraising round. This will pave the door for new opportunities for companies to communicate with their consumers individually. One should automatically add the proper legal wording at every opt-in point to ensure that your data collecting operations adhere to the compliance criteria set.

We had previously checked in on the firm the year before when it had just received $35 million in Series B investment to continue assisting Shopify merchants in remaining in contact with their consumers through text message. We also covered Postscript in 2019, when the company successfully funded $4.5 million.

In 2021, the business had 61 workers and served more than 3,500 clients. According to the firm’s CEO, Adam Turner, the number of staff has increased to 230, and the number of brands hosted on Shopify has more than doubled to over 8,500. It has expanded to include brands such as Brooklinen, Homesick, Native, Spikeball, and Kopari. Additionally, the firm could more than double the amount of money it made.

According to Turner, clients that use Postscript experience a return on their investment around 25 times greater than the initial expenditure. Although Black Friday is one of the most important days for the firm to look at for traction, Memorial Day was the most important day for the company regarding SMS sending this year. He estimates that 30 and 40 million SMS were exchanged, much more than the usual range of 5 million to 10 million.

The Postscript Return to Shopify

He clarified that even though business owners are concerned about the possibility of a recession, they can still implement an SMS strategy because of Postscript’s return, which is basically $25 for every $1 that they invest. For instance, he said that retailers using this strategy for the previous year are responsible for generating forty percent of the gross merchandise volume for their locations.

“Merchants are having success even though the prices of advertising on Facebook are increasing, and they are finding that the lifetime value of their customers is still high,” he said. “They are also more intelligent, and they are using SMS as a two-way platform to react to clients to generate a purchase,” Because it is not only a billboard but also an engagement channel where users can respond and obtain help for their purchases, this adds additional value for the end user.

According to Turner, the business decided to pursue new investments after discovering that e-commerce sales made through SMS in the United States account for just 16% of total sales.

In contrast, sales made via communication systems like WeChat account for 26% of total sales. “By assisting merchants in developing connections and other channels outside their websites, our goal is to move e-commerce and traditional retail in the United States into the 21st century.”

Postscript will continue to work with merchants that use Shopify. Still, with the fresh Capital, the company will also have the option to collaborate with some of its most valuable clients who use other platforms. Additionally, Turner aims to use the funds for product engineering, go-to-market strategies, and sales and marketing initiatives.

Venture Capital

Turner believes that Postscript is creating the best possible approach for using SMS marketing and will continue to build more features with those customers in mind. Although providing personalized experiences to customers is still tricky, Turner believes Postscript is making great strides in this direction.

The venture capital company Advisors, owned by Dick Costolo, spearheaded the fresh investment. Other participants in the funding round included Twilio Ventures, Expanding Capital, and m]x[v Capital, in addition to the previously mentioned Greylock, Accomplice, Elephant, and OpenView.

Since its inception in 2019, Postscript has amassed over $100 million in investment from private equity and venture capital firms. Costolo stated in a written statement that “in the same way texting altered the way individuals connect, Postscript impacted how companies engage with their consumers.”

“We invest in businesses with a good product market fit and are focused on additional innovation and scaling to propel them into their next growth phase. Postscript exemplifies this profile more than any other company we’ve ever worked with,” said one of our partners. They are the way business will be done in the future.

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