Arrowroot Capital is doubling down on its investment in Evergage, a Somerville startup that provides real-time personalization services to companies like Walmart Mexico and Lenovo.
Evergage announced on Tuesday it has raised a $10 million Series C round led by Arrowroot, a Santa Monica-based growth equity firm that also led its Series B last year. Other previous investors G20 Ventures and Point Judith Capital also participated in the round, which brings total funding to more than $31 million.
The company's latest funding round comes after it has doubled annual revenue for the past two years and reached 85 employees, up from 50 in January 2016. The company, which has over 150 customers, also increased its office footprint in Somerville by 160 percent to 13,000 square feet. Evergage declined to provide any revenue figures.
Evergage sells its software to companies that are looking to provide more personalized experiences for customers coming to their websites and apps as a way to increase things like engagement, retention and revenue. For example, Rue La La has used Evergage to provide product recommendations, send personalized messages when a customer deletes an item from his or her cart and deliver location-based information on billing and shipping — all of which led to an increase in revenue of up to 15 percent per visit.
"By being more relevant, it’s engaging and it feels right for them," Karl Wirth, Evergage's CEO and co-founder, told BostInno.
The startup's software can follow user behavior on a website — including clicks, time on page and more specific actions, like adding an item to a shopping cart — and combines that with various data sources to provide personalized recommendations. Potential data sources include a user's IP address, which Evergage can use to determine a user's location and employer, and customer transaction information. Another important component of Evergage's software is machine learning, which is used to determine personalized responses that are more likely to convert and provide predictive analytics.
While a number of ecommerce companies use Evergage, the startup also provides personalization services to companies selling into enterprises. That includes Endurance International Group, which saw a 71 percent increase in conversion rates for selling product upgrades after using Evergage to provide in-app offers.
Companies that became Evergage customers in 2017 are across the consumer-enterprise spectrum, including Walmart Mexico, Newegg Flash and Hexaware Technologies. Wirth said the company generally targets companies working in retail, financial services and tech.
