Toronto startup claims it is profitable and has grown 330 percent in the past three years.
Toronto-based email communications startup ContactMonkey has secured $55 million in Series A funding.
According to the company, the investment came from just one investor: American growth equity firm Updata Partners. Two Updata team members have joined ContactMonkey’s board as part of the round: partner Braden Snyder and operating partner Sloan Gaon.
ContactMonkey’s solution was designed to take the “grunt work” out of internal communications.
“We believe it is vital that companies improve their communications with their employees and facilitate a strong, collaborative, and transparent culture, even across remote workplaces and disparate teams,” ContactMonkey founder and CEO Scott Pielsticker said in a statement. “We’re looking forward to partnering with the Updata team to grow our teams and solutions as more companies realize how critical their internal communications are to their business.”
Founded in 2010, ContactMonkey started as a sales email tracking tool that helped companies strategically serve their customers. According to the startup’s website, the team later pivoted the solution into an internal communications tool, which has been operational since 2015.
This tool was designed to take the “grunt work” out of internal communications. The platform helps employers draft streamlined, on-brand emails, and uses predictive analytics to help users build segmented employee lists, collect feedback, and make use of granular email metrics.
ContactMonkey integrates into email software such as Microsoft Outlook and Gmail, as well as HR software such as Workday and SAP. According to the startup’s website, the solution is used by companies like Ikea, Toyota, and Roku.
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The startup claims on its website that for one of its clients, Mettler Toledo, the platform led to a 33 percent increase in employee engagement, 50 percent increase in time savings, and 206 fewer emails sent.
In a statement announcing the financing, ContactMonkey claimed it has been bootstrapped until now. However, per BetaKit’s reporting, the startup raised an $800,000 seed financing round in 2012 from Plazacorp Ventures and several angel investors.
In its most recent statement, ContactMonkey claimed that it is profitable and has grown 330 percent over the past three years. The startup was named to Deloitte’s Fast 50 and Fast 500 lists this year and was listed among Canada’s top growing companies by The Globe and Mail.
Per ContactMonkey, Updata Partners is a Washington, DC-based investor that aims to help bootstrapped software startups scale. ContactMonkey is not its first Canadian investment—Updata has also invested in Uberflip and Acuity Insights.
The startup plans to use this investment to continue growing its reach in Canada, Europe, the United States, and Australia, as it looks to double its 80-person team in 2024.
Feature image source ContactMonkey.
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