Shopify just made a US$100 million strategic investment in Klaviyo.
👉 Background: Shopify is the e-commerce platform that helps people and businesses create online stores. On the other hand, Klaviyo is an e-commerce marketing platform. Think of those emails you automatically get when you leave something in your online shopping cart.
👉 What happened: Shopify has just made a US$100 million strategic investment in Klaviyo.
👉 What else: Now, Klaviyo will become the recommended email partner for Shopify Plus users. Looks like these two are really becoming business besties…
💡Strategic investments are investments that have the goal of not just financial returns - but also business advantages.
💡For Shopify, this investment means it is now incentivised to drive customers to Klaviyo’s platform. Shopify may also have a say on Klaviyo’s product direction.
💡For Klaviyo, it’s likely that they’re getting distribution across Shopify's 1.75 million merchants. This seems to be part of a series of similar strategic investments made by Shopify. Like the $2.1 billion it spent buying an end-to-end logistics platform called Deliverr.
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