After laying off nearly 1,000 employees, Shopify is renewing its focus on improving its merchant services through a $100 million investment in email solution provider Klaviyo.
Under the terms of the deal, Klaviyo will serve as the recommended email solution partner for Shopify Plus merchants with higher sales volume, offering additional functionality, scalability, and support from Shopify’s base-level offering.
Additionally, Klaviyo will gain early access to new Shopify development features and work to accelerate new technologies that are being designed to help merchants navigate recent shifts in online marketing.
“Our goal has always been to understand our customers (and their biggest challenges) and build the most loved product that solves those challenges,” said Andrew Bialecki, co-founder and CEO of Klaviyo. “Partnerships with leading platforms like Shopify that share our values and mission are crucial to how we help solve those challenges creators and brands face. We’re excited about what this continued partnership represents for our customers.”
Klaviyo has been part of the Shopify ecosystem since 2017 and has worked with brands like Loeffler Randall, Glossier, and OSEA to establish deeper customer relationships.
The announcement follows Shopify’s move to cut its workforce by 10% as the company overestimated its growth prospects in the eCommerce space.