Warburg Pincus leads a $155m investment in Salsify

Sep 23, 2020 | News

Private equity firm Warburg Pincus has led a $155m investment in Salsify, which helps brands manage and improve online customer experiences, in a growth investment that is expected to fuel its international expansion.

Salsify plans to use funds from the Series E round to accelerate its growth in Europe and ultimately to push into Asia. The Boston-based company’s CommerceXM system provides brands including Rubbermaid and L’Oréal tools to manage customer interactions and collect feedback that can be used to enhance marketing, according to its website.

“[Customers are] engaging with consumers through brick-and-mortar stores, e-retailers and direct-to-consumer sites,” Jason Purcell , Salsify’s co-founder and chief executive, said on Tuesday, adding that the company’s programs provide a centralized hub for information on all the commerce happening across a broad ecosystem.

Salsify’s roughly 800 customers also include beverage giant Coca-Cola Co. and sweet-maker Mars. About a quarter of the customers generate more than $1bn in annual revenue each and 165 have global implementations of Salsify’s platform.

Earlier this month, Salsify named Mike Milburn, a former chief customer officer at Salesforce.com, as president to lead all of its go-to-market and customer operations. Salesforce helped pioneer the cloud-based software-as-a-service business model.

 Salsify currently employs about 440 people but expects to add hundreds over the next 12 months, Mr. Purcell said.

The company raised $43m in a Series D financing round in 2018 and collected just under $100m from investors in total before the latest investment. New York-based Warburg Pincus, which has more than $53bn in assets under management, has invested more than $20bn in technology companies since its founding in 1966.

Source: Private Equity News

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