Buyer assist startup Gorgias raises $ 25 million

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Gorgias announced today that the company has raised $ 25 million in Series B funding, bringing the startup's pre-money valuation to $ 300 million.

When the company launched its Series A a little over a year ago, CEO Romain Lapeyre (who founded Gorgias with CTO Alex Plugaru) told me that they are working with e-commerce companies to get the answers to the most common questions about the Automating customer service while providing tools at the same time.This helps the support team to react faster and even convince customers to buy additional products and services.

Gorgias It currently supports more than 4,500 stores, including Steve Madden, Timbuk2, Fjällräven, Marine Layer, Ellana, Electrolux and Sergio Tacchini, according to data. And sales are up 200% this year.

This may not come as a surprise given the overall growth in e-commerce during the pandemic. According to Lapeyre, merchants saw a "huge increase" in online orders, leading to a similar increase in customer service inquiries. As a result, they increasingly turn to Gorgias for help.

According to Lapeyre, retailers are initially only trying to respond more quickly to their customers and make their support team more efficient. However, over time, they become more interested in using customer support to drive sales. In fact, he recalled speaking to a company that used to compensate their support team based on response time and now offered them a sales commission.

Credit: Gorgias

He expects that these trends will continue after the end of the pandemic: "We have just jumped five years into the future."

Gorgias has now raised a total of $ 40 million. The new round was led by Sapphire Ventures, with the participation of SaaStr, Alven, Amplify Partners, CRV and Greycroft.

Lapeyere said the money will allow Gorgias to continue hiring (it jumped from a team of 30 to 100 this year), particularly on the engineering side, where it can develop even more automation for the platform.

"As consumers increasingly shop online, the Gorgias platform is delivering a new generation of customer support for high-growth e-commerce brands," said Rajeev Dham, managing director of Sapphire Ventures, in a statement. "Co-Founder and CEO Romain Lapeyre and his team created an incredible product that gives ecommerce merchants a single app to manage all of their customer communications and, ultimately, a far better customer experience."