Led by Insight Partners, the new financing will accelerate international growth, ecosystem expansion and technology innovation to seize the $28 billion market opportunity
Contentstack, the leading Content Experience Platform (CXP), today announced it has raised $57.5 million in series B financing. The oversubscribed round was led by Insight Partners, who also led the company’s series A round. Existing investors Illuminate Ventures and GingerBread Capital also participated, as did new investor Georgian. This brings Contentstack’s total amount raised to $89 million. The company plans to use the new capital to fuel international growth, expand its ecosystem of channel and technology partners and accelerate new technology innovation that has been incubating in Contentstack’s labs.
COVID-19 was the digital accelerant of the decade, according to a recent study from Twilio, as it expedited companies’ digital communications strategy by an average of 6 years. Given that, it is no surprise that Aragon Research forecasts the CXP market will grow to $28.8 billion by 2025 (up from $11 billion in 2019); 50% of large enterprises are expected to shift to a CXP by the end of 2022 alone. Contentstack is well-positioned to capitalize on this growing market by addressing the needs of customers with modern, MACH-based solutions that outperform traditional product suites and legacy technologies.
Contentstack recorded over 150% growth of its customer base since closing its series A round and more than doubled the number of Fortune 1000 companies that have adopted its platform. New customers include Broadcom, Chico’s FAS, HP, La Perla, Leesa Sleep, McDonald’s and NBC. As a result of Contentstack acting as these organizations’ core content hub, the amount of digital content powered by Contentstack grew a staggering 60X over the same time period. Individual customers now serve petabytes of content to their audiences every month.
In February, Contentstack launched a new streamlined, elegant user interface for its platform, which raised the bar for experience across the Content Management Systems (CMS) industry. With the backing of Georgian, a significant investor in Shopify, Kony and Tealium, Contentstack will tap into Georgian’s expertise around AI and machine learning and gain access to the firm’s unique technology platform. This will enable Contentstack to infuse AI/ML into all aspects of its operations, from the way it delivers new platform capabilities to its award-winning customer success operations.
‘The company’s outstanding results were fueled by unprecedented market demand for powerful digital experiences due to the pandemic, as businesses were compelled to deliver content-rich digital interactions across the spectrum,’ said Neha Sampat, founder and CEO of Contentstack. ‘In the last year, we have helped leading companies in industries such as retail, financial services, gaming and travel to create personalized experiences for their customers in order to drive revenue, improve customer satisfaction and build customer loyalty. This round of financing demonstrates that our strategy is paying off, including our core beliefs around equality, customer care and product innovation. During a remarkably challenging year, our team delivered impressive results and we are excited to continue this growth trajectory by delivering the best agile CMS platform for a digital-first world.’ Recent Company Accolades • Contentstack was named a ‘Strong Performer’ in the Forrester Wave™: Agile Content Management Systems (CMSes), Q1 2021.
• The G2 Grid® for the top Headless CMS Software placed Contentstack as the only leader for enterprise companies.
• In the May/June issue of Inc., Contentstack was named in the Best Places to Work list, alongside Databricks, Hubspot, NerdWallet, Plaid and Unity.
• Contentstack was the winner of CUSTOMER Magazine’s 2021 Product of the Year Award for its industry-leading CXP platform.
• Woman’s Way Business Awards recognized Contentstack as the 2021 Business to Watch (with revenues exceeding $3M).
• The company also received four Comparably Best Places to Work awards that demonstrate the company’s commitment to diversity and inclusion, professional development, and strong leadership.
Supporting Quotes ‘Contentstack has risen from being the pioneer of headless CMS to establishing itself as an industry leader in its category and we are excited to support its next phase of growth,’ said Teddie Wardi, Managing Director at Insight Partners and Contentstack board member. ‘Given our scale, we have a unique vantage point on global trends; Contentstack is tapping into the tailwinds of one of the biggest market shifts we’ve ever seen. Contentstack is indispensable for companies that want to accelerate their digital journey and maximize the business rewards promised by digital transformation.’ ‘We are big believers in Contentstack and the leadership team, especially after our conversations with global brands revealed how important Contentstack is to these organizations and how beloved the product is by both business and technical users,’ said Emily Walsh, Lead Investor at Georgian. ‘Now with access to our technology platform, Contenstack can not only gain operational efficiencies but also supercharge the innovation, experience and support it offers to customers and partners. We are excited to help Contentstack customers leverage AI to gain business advantages through new insights and automation.’
Source: Business World