Parisian customer experience platform Contentsquare has raised $400 million in a Series F financing round that is complemented by $200 million in debt financing. With the company now valued at $5.6 billion, this brings the firm's total funding raised to $1.4 billion.
In a time of seemingly doom and gloom across the markets, it would appear as though Contentsquare is taking the Warren Buffett approach, and will use the new capital to engage in a series of M&A activities, particularly in new markets, as well as continue to further develop and refine its offer focusing on digital accessibility, privacy & sustainability.
Founded in 2012 by Jonathan Cherki, Contentsquare addresses a TAM of $34 billion, and analyses nearly $2.5 billion in transactions on a daily basis and 2.3 trillion customer digital interactions (clicks, touch gestures, content interactions, etc.) over mobile apps and websites on a monthly. basis. The service then prioritises this data and makes suggestions for customers to improve the user experience based on conversion and turnover rates.
As we can see, snapping up competitors and/or those that make healthy additions to Contentsquare’s offer is no new activity to the company: In 2019 Contentsquare acquired Israeli competitor Clicktale, through which the French company established Contentsquare Merchandising. With this offering, Contentsquare established a pricing index that provides real-time analysis and notification of fluctuating market conditions.
2020 saw the acquisition of Dareboost, a web performance monitoring tool that can be immediately integrated into the Contentsquare offer and constantly monitors web performance and shaves 0.1 seconds of load times, figures that can generate an 8% increase in conversion rates according to Google.
2021 saw the purchase of SMB-focused product experience insights tool Hotjar, adding a sizeable reach and product-led approach to Contentsquare’s portfolio.
The startup reports “several hundreds of million dollars in annual recurring revenue (ARR) and a year-on-year revenue growth rate over 100%”, and provides its services to clients across a wide range of retail sectors ranging from retail, media, telecommunications, tourism, automotive,to finance, 30% of which are Fortune 500 companies, and include BMW, Gucci, Ikea, Microsoft, Rakuten, Sephora, The NorthFace, Verizon. The company reports a compound annual recurring revenue growth rate of 121% over the past four years, with 50% of the business currently generated in the US.
The Series F investment is led by Sixth Street Growth, which joins new and existing investors Bpifrance, Canaan, BlackRock, Eurazeo, Highland Europe, KKR, LionTree, SoftBank Vision Fund 2, and funds and accounts managed by BlackRock.
According to the firm, many other existing investors also participated in the round.
“Contentsquare is uniquely positioned within the growing customer experience sector as it continues to provide customers with more advanced tools to scale their businesses and create deeper brand connections,” commented Sixth Street Growth’s Bo Stanley. “We have tremendous confidence in Jonathan and his team, and are thrilled to be joining an incredible cohort of existing and new co-investors in support of a business poised for its next phase of growth.”