New $175 million funding for Bloomreach results in $2.2 billion valuation

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Cloud-based e-commerce platform Bloomreach announced fresh funding of $175 million, more than doubling its valuation to $2.2 billion. The round was led by Goldman Sachs Asset Management with participation from existing investors Bain Capital Ventures and Sixth Street Partners. This follows a $150 million investment in January 2021 tallying the total funding to $420 million.

Bloomreach helps online retailers maximize their revenue by adjusting content in an automated manner based on the consumer profile and preferences ensuring a seamless shopping experience with enhanced personalization.

“Personalization is a 20-year-old technology, but so much on the web is still generic- that has to change,” co-founder and CEO Raj De Datta told TechCrunch.

The new capital injection will be invested in R&D to improve user experience through added personalization. The company also plans to expand further in the U.S and Europe.

“The first 20 years made it possible to buy on the web, and now in the next 20 years, it will be about moving a store to stand out in the crowd. There is so much competition and just 18% penetration of e-commerce so far. The transforming experience is all ahead of us.”

“We have seen, with the pandemic, a reinvention of e-commerce, and it is a $5 trillion market and we saw it grow 80% to 100% overnight,” he added. “We saw opportunity as structural shifts happened, and now people are used to it and will stick with it. Now is an incredible moment to capitalize on that performance. Go big and go transform commerce.”

In 2021, Bloomreach recorded $117 million in ARR (annual recurring revenue) growing 63% YoY and added over 100 brands to its existing customer base which now has over 1,100 brands.