CXP market will grow to US$28.8 billion by 2025, forecasts Aragon Research
Contentstack, the leading Content Experience Platform (CXP) from San Francisco and offices in Mumbai and Amsterdam, said the US$57.5 million raised from series B financing is to fuel international growth, expand its ecosystem of channel and technology partners and accelerate new technology innovation that has been incubating in Contentstack’s labs.
The oversubscribed round was led by Insight Partners, who also led the company’s series A round. Existing investors Illuminate Ventures and GingerBread Capital also participated, as did new investor Georgian. This brings Contentstack’s total amount raised to US$89 million.
Contentstack recorded over 150% growth of its customer base since closing its series A round and more than doubled the number of Fortune 1,000 companies that have adopted its platform. New customers include Broadcom, Chico’s FAS, HP, La Perla, Leesa Sleep, McDonald’s and NBC. As a result of Contentstack acting as these organizations’ core content hub, the amount of digital content powered by Contentstack grew a staggering 60X over the same time period. Individual customers now serve petabytes of content to their audiences every month.
COVID-19 was the digital accelerant of the decade as it expedited companies’ digital communications strategy by an average of 6 years, Contentstack cited a recent study from Twilio. Given that, it is no surprise that Aragon Research forecasts the CXP market will grow to US$28.8 billion by 2025 (up from US$11 billion in 2019); 50% of large enterprises are expected to shift to a CXP by the end of 2022 alone.
Contentstack is well positioned to capitalize on this growing market by addressing the needs of customers with modern, MACH-based solutions that outperform traditional product suites and legacy technologies.
In February, Contentstack launched a new streamlined, elegant user interface for its platform, which raised the bar for experience across the Content Management Systems (CMS) industry.
With the backing of Georgian, a significant investor in Shopify, Kony and Tealium, Contentstack will tap into Georgian’s expertise around AI and machine learning and gain access to the firm’s unique technology platform. This will enable Contentstack to infuse AI/ML into all aspects of its operations, from the way it delivers new platform capabilities to its award-winning customer success operations.
“The company’s outstanding results were fueled by unprecedented market demand for powerful digital experiences due to the pandemic, as businesses were compelled to deliver content-rich digital interactions across the spectrum,” said Neha Sampat, founder and CEO of Contentstack.
“In the last year, we have helped leading companies in industries such as retail, financial services, gaming and travel to create personalized experiences for their customers in order to drive revenue, improve customer satisfaction and build customer loyalty,” said Sampat.
“This round of financing demonstrates that our strategy is paying off, including our core beliefs around equality, customer care and product innovation. During a remarkably challenging year, our team delivered impressive results and we are excited to continue this growth trajectory by delivering the best agile CMS platform for a digital-first world,” she said.
“Contentstack has risen from being the pioneer of headless CMS to establishing itself as an industry leader in its category and we are excited to support its next phase of growth,” said Teddie Wardi, Managing Director at Insight Partners and Contentstack board member.
“Given our scale, we have a unique vantage point on global trends; Contentstack is tapping into the tailwinds of one of the biggest market shifts we’ve ever seen. Contentstack is indispensable for companies that want to accelerate their digital journey and maximize the business rewards promised by digital transformation,” Wardi said.
“We are big believers in Contentstack and the leadership team, especially after our conversations with global brands revealed how important Contentstack is to these organizations and how beloved the product is by both business and technical users,” said Emily Walsh, Lead Investor at Georgian.
“Now with access to our technology platform, Contenstack can not only gain operational efficiencies but also supercharge the innovation, experience and support it offers to customers and partners. We are excited to help Contentstack customers leverage AI to gain business advantages through new insights and automation,” said Walsh.
Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than US$30 billion in capital commitments. Insight’s mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Across its people and its portfolio, Insight encourages a culture around a belief that ScaleUp companies and growth create opportunity for all.
Georgian is a Fintech company investing in high-growth software companies that harness the power of data in a trustworthy way. Georgian’s platform is designed to identify and accelerate the best growth-stage software companies, taking an intelligent, data-first approach to solving the key challenges CEOs face as they grow their businesses. Based in Toronto, Georgian’s team brings together software entrepreneurs, machine learning experts, experienced operators and investment professionals. #technology #digital #investment /fiinews.com
