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Postscript Raises $65 Million to Enhance Personalized Messaging for Shopify Merchants

In a significant development, Postscript, an SMS marketing company, has raised $65 million in Series C funding. This fresh investment will enable the company to introduce new ways for brands to engage personally with their customers, building on its existing success in helping Shopify stores stay connected via SMS.

A Brief History of Postscript

We previously covered Postscript’s growth last year when it secured $35 million in Series B funding. This investment allowed the company to continue expanding its capabilities and reach more merchants. In 2019, Postscript raised an initial $4.5 million to launch its innovative approach to SMS marketing.

Rapid Growth and Expanding Reach

Under the leadership of CEO Adam Turner, Postscript has experienced exponential growth since its inception. The company now boasts a team of 230 employees, up from 61 in 2021, and has more than doubled its revenue. Its customer base on Shopify has surged to over 8,500 brands, with notable clients including Brooklinen, Homesick, Native, Spikeball, and Kopari.

Return on Investment: A Key Differentiator

Turner highlights the impressive return on investment that Postscript’s customers can expect. On average, customers see a 25-fold return on their investment using Postscript’s services. This is particularly notable given the current market challenges, including rising Facebook advertising costs and concerns about a potential recession.

Black Friday and Memorial Day Success

While Black Friday has traditionally been a significant day for traction, Postscript notes that Memorial Day became its largest SMS sending day this year. The company sent between 30 and 40 million texts on this occasion, compared to an average of 5-10 million. This demonstrates the growing importance of SMS in e-commerce marketing.

Addressing Merchant Concerns

Turner acknowledges that merchants are worried about a recession. However, Postscript’s impressive return on investment enables them to confidently invest in its SMS strategy. For example, merchants who have been using this approach for 1-2 years drive approximately 40% of their store’s gross merchandise volume.

The Future of E-commerce and Retail

According to Turner, e-commerce sales via SMS account for 16% in the United States, while sales via platforms like WeChat reach 26%. Postscript aims to bring the US up-to-date with modern e-commerce and retail practices by helping merchants develop relationships and other channels beyond their websites.

Postscript’s Plans for the Future

With its new funding, Postscript will continue to work closely with Shopify merchants while exploring opportunities to collaborate with some of its top customers on other platforms. The company intends to use this investment to drive growth in sales and marketing, go-to-market strategies, and product engineering.

Personalized Experiences: A Key Challenge

While providing personalized experiences for customers remains a challenge, Turner believes that Postscript is creating the best possible approach for using SMS marketing. By leveraging its expertise and innovative solutions, Postscript aims to continue pushing the boundaries of what is possible in e-commerce and retail.

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