Columbia-based SparkPost, the world’s largest email sending and optimization platform delivering nearly 40 percent of the world’s commercial email, has secured $180 million from LLR Partners, NewSpring Capital and PNC Bank to invest in the next era of growth of its market-leading email technology.
With the major shift to embrace and deploy digital marketing solutions in 2020 and beyond, B2C and B2B enterprises have turned to SparkPost to power their email communications programs, relying on its platform for improved deliverability, user experience, and industry-leading email data and analytics.
The investment will help fuel SparkPost’s next era of growth and product innovation as organizations continue to look at email as the channel to communicate and educate customers, and transact at scale in the years to come.
SparkPost’s focus on empowering the most sophisticated email senders globally has generated steady revenue growth within the last three years and substantially expanded its customer base, which includes companies like Zillow, The New York Times, Booking.com, Adobe, Rakuten, and Zynga. “We achieved the Rule of 40 in the third quarter of 2020 and we continue to perform at this level into the new year. SparkPost’s strong results made this growth financing possible,” said Rich Harris, SparkPost’s CEO.
COVID-19 and the resulting recession drove many organizations to lean more into digital communications, and SparkPost was able to help customers scale email channel efforts while maintaining an unrivaled level of performance.
“Email has proven to be the most cost-effective and reliable marketing and customer engagement channel,” said David Reuter, Partner at LLR Partners. “Rich and the entire SparkPost team have built impressive momentum throughout 2020 and our investment will help support company growth and its position as a leader in the enterprise email marketing space. We are thrilled to be a part of their journey to help deliver tangible value and customer success to enterprises globally.”
“We are pleased to collaborate with both LLR Partners and NewSpring Capital on this transaction, and we look forward to broadening our relationship,” said David Mengel, Group Head of PNC Business Credit Technology Finance. “It has been exciting for us to work with SparkPost as they embark on a new chapter in their growth.”