Startups > Klaviyo

Klaviyo

Klaviyo helps ecommerce brands automate personalized email and SMS at scale.

Corporate Round $1.48B total Founded 2012 Boston, Massachusetts 1614 employees

Klaviyo is an AI-powered email marketing and SMS platform that unifies customer data to drive personalized omnichannel experiences across email, SMS, WhatsApp, and ecommerce. It enables brands to build automated workflows triggered by customer behavior—like abandoned cart, welcome series, and replenishment reminders—that generate 30-50% of total email revenue without manual intervention. The platform serves ecommerce and direct-to-consumer brands by transforming raw customer data into actionable insights and revenue-driving automations.

Problem solved

Consumer brands have customer data but lack tools to personalize experiences and automate revenue-driving campaigns across channels at scale.

Target customer

Direct-to-consumer ecommerce brands, Shopify merchants, subscription businesses, and mid-market retailers seeking data-driven email and SMS marketing automation.

Website LinkedIn Crunchbase

Founders

Andrew Bialecki

CEO

Physics and Astronomy graduate from Harvard; previously CTO at RockTech and Senior Engineer at Performable; met co-founder at Applied Predictive Technologies.

Ed Hallen

Co-Founder & Chief Product Officer

Met Bialecki at Applied Predictive Technologies; focused on engineering, design, and product; also founded Sparling Financial and Team Engine.

Funding history

Seed $1.5M August 2015 Led by Unknown · Unknown

Series A $7M February 2016 Led by Summit Partners · Unknown

Series B $150M April 2019 Led by Summit Partners · Unknown

Series C $200M November 2020 Led by Unknown · Unknown

Series D $320M May 2021 Led by Sands Capital · Unknown

Corporate Round $100M August 2022 Led by Shopify · Unknown

IPO $576M September 2023 Led by Public Markets · Unknown

Total raised: $1.48B

Industries

Advertising E-Commerce Marketing Automation Analytics Software

Pricing

Freemium model based on active customer profiles, not email volume. Free plan: up to 250 profiles, 500 monthly sends. Paid plans start at $20/month (Email) or $35/month (Email + SMS) for 251-500 profiles. Pricing scales with profile count; 2025 update changed billing structure.

Notable customers

Shopify Plus merchants, direct-to-consumer ecommerce brands (specific names not disclosed in research)

Integrations

Shopify, WooCommerce, BigCommerce, Magento, custom APIs, ecommerce platforms, CRM systems, analytics tools

Website

klaviyo.com/

Competitors

Mailchimp

Broader marketing platform with lower entry price but less sophisticated automation and personalization for high-volume ecommerce.

HubSpot

All-in-one CRM platform with email; better for B2B and sales teams, while Klaviyo specializes in ecommerce retention and revenue automation.

ActiveCampaign

General marketing automation platform; Klaviyo's ecommerce-native approach and customer data integration provide deeper product-market fit for D2C brands.

Braze

Enterprise-focused customer engagement platform; Klaviyo more accessible to mid-market ecommerce, Braze stronger for mobile and cross-channel at scale.

Why this matters: Klaviyo is the category leader in ecommerce email automation, having scaled to a $9B+ IPO valuation in 2023 and securing a $100M strategic investment from Shopify as the recommended email partner for Shopify Plus. The company exemplifies founder-market fit—two engineers identified a real problem in ecommerce data utilization and built a product so essential to D2C brands that it generates meaningful revenue for most customers.

Best for: Direct-to-consumer and ecommerce brands that need to automate personalized email and SMS campaigns based on customer behavior and transaction data to drive retention and revenue.

Use cases

Abandoned Cart Recovery

Automatically trigger a sequence of emails when a customer adds items to their cart but doesn't complete checkout. The system sends reminders with product details, urgency, and incentives, recovering 10-20% of abandoned revenue without manual effort.

Post-Purchase Automation

Send a welcome sequence to new customers immediately after their first purchase, including thank you, shipping updates, product recommendations, and loyalty program enrollment. This builds relationships early and increases lifetime value.

Replenishment Reminders for Subscriptions

For consumable product brands (supplements, skincare, coffee), automatically remind customers when their last purchase was 4-6 weeks ago that it's time to reorder. Drives repeat purchases and reduces manual churn management.

Win-Back Campaigns for Lapsed Customers

Identify customers who haven't purchased in 90+ days and trigger a targeted win-back sequence with special offers or product recommendations. Re-engages dormant segments without manual segmentation.

Alternatives

Mailchimp More affordable entry point and broader feature set, but less ecommerce-native and weaker behavioral automation for high-volume D2C brands.

HubSpot Better for B2B and sales-driven companies; Klaviyo is purpose-built for ecommerce retention and revenue maximization.

Braze Enterprise-grade platform with stronger mobile and cross-channel capabilities; Klaviyo more accessible and ecommerce-focused for mid-market brands.

ConvertKit Designed for creators and newsletters; Klaviyo focused on ecommerce automation and transaction-driven campaigns.

FAQ

What does Klaviyo do? +

Klaviyo is an AI-powered email and SMS platform that helps ecommerce brands automate personalized customer communications based on behavior and transaction data. It unifies customer profiles and enables automated workflows like abandoned cart recovery, post-purchase sequences, and win-back campaigns that run 24/7 and typically generate 30-50% of total email revenue.

How much does Klaviyo cost? +

Klaviyo offers a free plan for up to 250 active profiles and 500 monthly email sends. Paid plans start at $20/month for email (251-500 profiles) or $35/month for email + SMS. Pricing scales based on the number of active customer profiles, not email volume. Enterprise and custom plans are available for larger brands.

What are alternatives to Klaviyo? +

Top alternatives include Mailchimp (more affordable, broader features but less ecommerce-native), HubSpot (better for B2B and sales), Braze (enterprise-grade with stronger mobile), and ActiveCampaign (general marketing automation platform). Choice depends on industry focus and scale.

Who uses Klaviyo? +

Direct-to-consumer ecommerce brands, Shopify merchants, subscription businesses, and mid-market retailers. Notable user base includes Shopify Plus merchants, though specific customer names are typically not disclosed publicly. Primarily serves high-growth, data-driven ecommerce companies.

How does Klaviyo compare to Mailchimp? +

Klaviyo is purpose-built for ecommerce and offers more sophisticated behavioral automation, customer data unification, and revenue-focused workflows. Mailchimp is more general-purpose and affordable for startups but lacks Klaviyo's ecommerce-native features. Klaviyo is better for brands where email drives significant revenue; Mailchimp for broader marketing needs on a tighter budget.