a Shopify partnership worth $9B
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How Klaviyo grew to $9.5B with distribution partnerships
Klaviyo is a marketing automation platform for DTC companies. They consolidated emails, SMS, push, & reviews with one platform and used partnerships to grow to a $9.5B valuation. They raised $770M from Shopify, Accel, and Summit Partners.
Klaviyo’s GTM strategy
Klaviyo started as an email marketing for ecommerce brands. They have positioned themselves as the DTC growth tool with a smart engine to build automation based on customer data.
Think of it as Hubspot for DTC.
Klaviyo started to grow after the plugged into the biggest trend in 2018 — Shopify. Initially, they did focus on software startups but bigger traction started once they went deep into one vertical (ecommerce). Combining strong positioning within the DTC companies market with a distribution partnership from Shopify they caught two major trends at once.
This is another example of having multiple trends and GTM strategies stacked on top of each other.
The marketing automation market is only worth $5B and growing 18% annually which would be too small for them to beat as they already surpassed market value ($5B) with valuation ($9.5).