Yalo, a conversational commerce platform has recently raised $50 million in a Series C funding round led by existing venture investor B Capital Group. Yalo, Earlier known as Yalochat, has raised total capital of $75 million to date.
Yalo enables huge companies Such as Unilever, Nestle, Coca-Cola, and Walmart to communicate and transact directly with customers via messaging platforms such as WhatsApp. The startup is working with full force in the US, Mexico, Brazil, and India.
The social commerce startup is going to use the raised capital to deepen its presence in Latin America and Southeast Asia. It is also going to strengthen its development of new product offerings, adding conversational marketing and payments solutions.
Conversational commerce permits businesses to sell products in a personalised way via messaging apps by bridging the proximity of the physical world with the ease of digital commerce.
As per a BCG report, conversational commerce is already a $35 billion market with the potential to be at $130 billion by 2025 in growing markets.
Javier Mata, Founder and CEO of Yalo, said, “For a long time, enterprise digital transformation has been synonymous with complexity; but not anymore. Conversational commerce is a simple technology solution that helps brands to meet end-users where they already are in their favorite mobile communication channels.”
The investment is going to fund the development of new conversational commerce products and add further value for international consumers by enabling them to continue their customer relationships and compete with e-commerce titans.
During the COVID-19 pandemic, Yalo helped companies like Coca-Cola to shift from offline commerce to conversational commerce, generating an increase in sales by over 20%. In the same way, the startup helped US retailer Sears increase its conversion rate by 260%.
Inspired by these customer’s success stories, last year, Yalo achieved YOY revenue growth of 120%, and the startup rapidly scaled its teams to serve clients from over 41 countries.