Gorgias Raises $25M to Revolutionize Customer Support

Gorgias has revealed today that it secured $25 million in Series B funding, establishing the company’s pre-money valuation at $300 million.

During the company’s Series A funding round a little over a year ago, CEO Romain Lapeyre (who established Gorgias alongside CTO Alex Plugaru) explained that the platform assists e-commerce companies in automating replies to frequently asked customer service inquiries, while also supplying resources to enable support teams to respond with greater speed and even encourage customers to purchase further products and services.

According to Gorgias, the platform currently serves over 4,500 stores, including Steve Madden, Timbuk2, Fjällräven, Marine Layer, Ellana, Electrolux and Sergio Tacchini. The company has also reported a 200% increase in revenue this year.

This growth is likely connected to the broader expansion of e-commerce seen during the pandemic. As Lapeyre stated, businesses experienced “a substantial increase” in online orders, which subsequently led to a comparable surge in customer service requests – prompting them to seek assistance from Gorgias.

Initially, Lapeyre noted that merchants are primarily focused on improving the speed of their responses and enhancing the efficiency of their support staff. However, over time, they have shown increasing interest in leveraging customer support “as a means of boosting sales.” He recalled a specific instance of a company that transitioned from compensating its support team based on response time to offering them a commission on sales.

He anticipates that these patterns will persist even after the pandemic subsides, asserting, “We have effectively advanced five years into the future.”

Gorgias has now accumulated a total of $40 million in funding. This latest round was spearheaded by Sapphire Ventures, with contributions from SaaStr, Alven, Amplify Partners, CRV and Greycroft.

Lapeyere indicated that these funds will enable Gorgias to continue its expansion of personnel (the team has grown from 30 to over 100 employees this year), with a particular emphasis on engineering roles to facilitate the development of even greater automation capabilities for the platform.

“As more and more consumers make purchases online, the Gorgias platform is enabling a new approach to customer support for rapidly expanding e-commerce brands,” stated Sapphire Ventures Managing Director Rajeev Dham. “Co-founder and CEO Romain Lapeyre and his team have created a remarkable product that provides e-commerce merchants with a unified application to manage all customer interactions – ultimately resulting in a significantly improved customer experience.”