Dynamic Yield, which builds Amazon-like personalisation for the rest of us, raises $38M
Amazon, one of the world’s largest companies, has transformed the face of commerce in part because it has managed at once to be “The Everything Store” but still with a route into its sea of products that, for most users, surfaces what they might most want to see (and importantly buy or consume). That kind of personalisation has become a goal not just for e-commerce companies, but for any organization running a digital business: users are constantly distracted, and when their attention is caught, they do not want to spend time figuring out what they most want.
Not every business is Amazon, though, so we are seeing a crop of startups emerging that are working on ways to help the rest of the digital world be just as optimised and personalised as Amazon. Now one of them, an Israeli startup called Dynamic Yield, has raised more money as it continues to expand its business, both to more platforms and to more geographies.
The startup’s Series D has now closed off at $38 million, with the inclusion of a $5 million strategic investment from Naver, Korea’s “Google” (it’s the country’s top search portal) that is also behind messaging apps Line and Snow. The plan is for Naver to help bring Dynamic Yield to Korea and Japan, by incorporating its tech into its own services and those of others that work with Naver.
(Personalisation and aggregators are strong magnets for users in Asia and thus big magnets for funding: ByteDance, which provides news aggregation among other services, was recently valued at $75 billion.)
Naver is not the only search engine that has caught sight of Dynamic Yield over the years. Previous investors include Baidu (“the Google of China”), and we’ve heard that when the startup was younger — it was founded in 2011 — Google had tried to acquire it (Dynamic Yield rejected the offer, and it’s been approached for acquisitions numerous times since then).
Other strategic investors include The New York Times and Deutsche Telekom, alongside other backers like Innovation Endeavors, Bessemer Venture Partners, Marker Capital and more.
Dynamic Yield has raised $85 million to date and is now valued at “hundreds of millions of dollars,” but less than $500 million, a source at the company said, after seeing a strong expansion of its services.
Dynamic Yield says it works with more than 220 global brands, and its tech reaches 600 million unique users each month, across 10 billion page views and 600 billion “events” on those pages. It claims its AI-based personalisation technology can lift revenues (or other engagement metrics) by 10-15 percent.
“It makes us an effective tool for surviving in a market where customer acquisition cost keeps getting more expensive,” co-founder and CEO Liad Agmon said in an interview.
Dynamic Yield doesn’t talk about many of its customers on the record — most don’t like to reveal to rivals who they work with, Agmon said.
But they include a number of big brands across …read more
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