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Bloomreach hits $2.2 billion valuation en route to a ‘post-cookie’ world

As digital shoppers become more sophisticated, so do their expectations. Bloomreach, a cloud-based e-commerce platform, helps businesses meet these expectations, using AI to ensure a seamless shopping experience across platforms and provide hyper-specific recommendations. And it does so without harassing consumers on the Internet, futureproofing its own customers like Safari, Firefox and soon Google, which seek to block third-party cookies in the name of privacy.

The first 20 years of online retail were pretty much limited to allowing businesses to build their e-commerce storefronts and transact online, said Bloomreach CEO and co-founder Raj De Datta. Forbes. “The next battleground is to differentiate the experience.”

A relatively new player in an industry that includes Adobe’s Salesforce and Magento cloud commerce mammoths, Bloomreach differentiates itself by focusing on the needs of e-commerce entities, says De Datta. The company also claims a unique data engine informed by billions of consumer and product profiles all aimed at preventing customers from abandoning their cards. On Wednesday, Bloomreach announced $175 million in new funding, more than doubling its valuation to $2.2 billion. Goldman Sachs Asset Management led the round with participation from existing investors Bain Capital Ventures and Sixth Street Partners.

“Bloomreach’s largest historical competitors often struggle to deliver a seamless customer experience as they integrate acquisitions and the market continues to shift to headless commerce experiences,” said Stephen Kerns, chief executive of Goldman Sachs. Growth Equity.

Bloomreach doesn’t offer commerce tools like shopping carts and catalogs and instead partners with big commerce, says Joe Cicman, principal analyst at Forrester. “Bloomreach wants to be awesome only on e-commerce sites. It allows them to go very deep rather than wide.

Take, for example, one of Bloomreach’s biggest customers, athletic shoe company Puma. “If you go to their website and search for sportswear and sports shoes, we know your preferences, we know what kind of shoes you are interested in, we know what sport you might have a preference in,” says De Date. Bloomreach’s AI determines these preferences based on a customer’s activity on the website. “We really focus on first-party data. We don’t use cookies and all those other third-party trackers that somehow violate user privacy and that Apple and others remove.

De Datta, a serial entrepreneur and tech investor, and Ashutosh Garg, a former Google researcher, started Bloomreach in 2009. “When Bloomreach started, it was very much a search company,” De Datta said. Forbes. Since its inception, the company has added an array of features, some of which have been aided by acquisitions of tangential companies in the market such as web content management company, Hippo and marketing automation company, Exponea.

Bloomreach serves approximately 850 brands, including Williams Sonoma and Torrid, with its suite of tools such as SEO recommendations, personalized email and SMS marketing campaigns, and blogging across three categories of discovery, engagement, and content. Together, they embody a digital shopping experience, says De Datta. “Commerce Experience Cloud is everything from the first moment of the marketing touch until you buy the product.”

The company currently has a team of 760 employees on three continents and $117 million in annual recurring revenue, plans to use the new investment to expand internationally in Germany and improve the personalization and data capabilities of its products .

De Datta says the company is ripe for an IPO within the next five years as it ticks all the metrics for a successful public company. “I think it would be natural as we pursue this $20 billion opportunity,” he says. “It’s definitely on the cards…We’ll be watching market forces.”