Alibaba led a $20 million Series B funding round for Connectly this week, fueling the AI-powered conversational commerce platform’s mission to transform how brands personalize customer text messages. The investment brings Connectly’s total funding to $37.2 million, valuing the San Francisco-based startup at approximately $100 million.
Scaling Rapid Growth in a Competitive Market
Connectly has established a solid foothold in the competitive conversational e-commerce sector, currently serving over 300 paying customers. Despite facing intense pressure from both startups and established industry giants—including Attentive, Twilio, Infobip, Bird, Take Blip, and Yalo—the company is reporting aggressive financial momentum. After achieving a 5x revenue increase last year, Connectly projects a 100% growth rate throughout 2024.
While CEO Loukakos declined to provide exact revenue figures, the company reported $3.5 million in revenue last year, placing it on a trajectory to reach approximately $7 million by the end of this year.
The Strategic Significance of Alibaba’s Investment
The participation of Chinese retail powerhouse Alibaba has sparked speculation regarding potential future collaborations. While Loukakos remained tight-lipped on specific strategic partnerships, he noted that the support from Alibaba is “profoundly impactful to Connectly’s potential.”
An Alibaba spokesperson emphasized the strategic alignment, stating, “We look to partner with innovative companies that are paving the way in their industry. Connectly is doing just that with AI-powered conversational commerce.”
Future Roadmap and Workforce Expansion
The Series B round also saw participation from Unusual Ventures, Volpe Capital, RX Ventures, and Falabella Ventures. According to Loukakos, the new capital injection is earmarked for two primary goals: expanding the core platform’s capabilities and increasing the company’s San Francisco-based workforce from 65 to nearly 80 employees by year-end.
