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Almost a year after closing the largest single venture raise in Australian history, e-commerce marketing tech firm Rokt has bolstered its valuation to US$2.4 billion (AUD$3.6 billion) following a secondary funding round led by Square Peg and Wellington Management.
The $810 million valuation boost comes at the same time the Sydney-founded, New York-headquartered company looks towards a Nasdaq initial public offering (IPO) next year, as well as opening a second North American development centre on the west coast.
Founded in 2012, Rokt uses AI and machine learning to analyse online shoppers and their engagement with products and services so it can deliver more personalised messages and offers, leading to higher engagement and increased revenue.
The company’s previous raises include a US$8 million Series A raise in 2013, which was when the company launched with eBay and expanded into Melbourne, Singapore and New Zealand.
The initial funding round was followed by a US$26 million Series B four years later, as well as a US$48 million Series C raise in 2019 and US$80 million Series D funding round in October 2020.
“Despite broader market declines in valuations, we continue to see rapid growth in Rokt driven by new e-commerce partners and an uplift from advertisers,” Rokt CEO Bruce Buchanan said.
“Due to the challenging economic climate, e-commerce companies are focusing on more relevant customer experiences that improve economics and deliver new revenue.
“This has further propelled Rokt’s growth and we’re pleased to see this expression of support from existing investors as Rokt looks towards an IPO.”
Rokt services more than 3,000 brands, including Live Nation, Groupon, Staples, Wayfair, Fanatics, Vistaprint and Ticketmaster. The company operates in 14 countries across North America, Europe and the Asia-Pacific region and employs 400-plus staff.
The news of its upgraded valuation comes a month after Square Peg - which has baked the likes of Canva, Airwallex, Amber and Blinq - secured $859 million to invest in both early and late-stage tech companies across Southeast Asia, Australia and Israel.
It marks the sixth time Square Peg has invested in Rokt, with the VC holding a 12 per cent stake in the company.
“We’re thrilled to have the opportunity to further invest in Rokt, a business that offers its clients extraordinarily high revenue retention,” Square Peg co-founder and partner Paul Bassat said.
“The company’s continuing success and profitability are a testament to the strength of its core business and impressive leadership team helmed by Bruce Buchanan.”
This year has seen Rokt land multiple new partnerships, including with global food delivery company Uber Eats and US movie theatre chain AMC Theatres.
“Rokt has continued on its rapid growth trajectory despite industry headwinds and, we believe is well positioned to thrive amid ongoing market challenges,” Wellington Management principal Prakhar Singh said.
“We’re proud of our investment in Rokt and excited to see the company prepare for its IPO.”
“We continue to be impressed by the execution of Bruce and his team. Seeing the business perform as strongly as it has, given the macro environment, is a testament to the quality of the product and the value Rokt provides to its customers."
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