Klaviyo, the global technology company that specializes in marketing automation, has experienced a successful IPO, raising $576 million and achieving a valuation of $9.2 billion. The company’s platform is primarily used for email marketing and SMS marketing, with the majority of its clients being e-commerce sellers who use Shopify as their host.
Klaviyo was founded in 2012 by Andrew Bialecki and Ed Hallen, both of whom had previously worked at Applied Predictive Technologies. In August 2022, e-commerce giant Shopify announced that Klaviyo would be its recommended email solution partner for its Shopify Plus merchant platform, making a strategic investment of $100 million into the company.
In May 2023, Klaviyo filed for an IPO, and in September, the company went public, listing on the New York Stock Exchange. Klaviyo’s shares surged 32% on its first day of trading, solidifying its position as the third technology company to successfully list in a short period.
Despite a broad sell-off triggered by the Federal Reserve, Klaviyo’s shares finished its debut session up 9.2% at $32.76. This successful IPO follows the positive receptions received by grocery delivery company Instacart and chip designer Arm, further igniting interest in tech listings among venture capitalists and start-up founders.
Klaviyo’s partnership with Shopify has been instrumental in ensuring a steady stream of clients for its services. Prior to the IPO, Shopify held an 11% stake in Klaviyo after its $100 million investment. Klaviyo’s profitability drive, with $15 million in net income in the first half of the year compared to a $25 million loss the previous year, has set it apart from other unprofitable tech companies that experienced post-IPO slumps.
Klaviyo’s co-founder and CEO, Andrew Bialecki, retains substantial control over the company. Investment banks Goldman Sachs, Morgan Stanley, and Citi led the IPO offering, further bolstering confidence in Klaviyo’s future prospects as it continues to grow in its sector.