Back in April Tel Aviv-based Yotpo raised $800,000 in seed funding. But what the hell is it? Well, it’s out to “make your customers happy” by allowing mainly ecommerce sites to engage visitors (getting them commenting, re-tweeting, sharing, etc.) by serving them with opinions about the new gadget or whatever it is in a social manner. Now it’s closed a $1.5 million round led by Rhodium and Gandyr Group with participation from Zohar Gilon, Tron Capital, and current investors Plus Ventures and 2bAngels. The new funding will enable Yotpo to expand with ecommerce websites, and accelerate the product. It competes with other social review sites out there such as Reevoo.
Yotpo says 2,000 commerce sites are now using its platform with a rate of 120 sites joining a week. In part it’s because it integrates with commerce platforms like Magento, Bcommerce, Shopify, Volusion and 3dCart, says Tomer Tagrin, CEO and co-founder at Yotpo.
The idea is to give users a simple, Facebook-like experience creating a community of reviewers, and thus — hopefully — increasing the ratio of reviews per sales, which is a useful thing for small and mid-size retailers.
Sites like Amazon and Yelp already offer reviews by customers. But fake reviews are a big problem for sites now, so this is a sort of social proof manner of generating content around items on commerce sites.