Segment, a customer data hub announced it raising $27 million in Series B round of funding led by Thrive Capital along with participation from existing investors Accel Partners, Kleiner Perkins Caufield & Byers and Jon Winkelried, former president of Golman Sachs.
Founded in 2011, Segment provides a single system for tracking customer data and sending it out to third-party tools and databases to collect all data in one place and then send it to tools from analytics, marketing automation and raw data access with SQL. The startup reduces engineering work, syncs consistent data across tools, and offers the flexibility to build a best-of-breed stack. It has attracted over 30 partners to build their own integrations for the platform.
Peter Reinhardt, CEO & Co-founder of Segment, “We actually have a lot of different folks who use Segment depending on the size of the company by typically our customers are technical – an engineer, a technical co-founder, a VP of Engineering or a CTO.” He added, ” “They use Segment as a centralized system to track data about how customers use their sites and mobile apps and send that data onto third-party tools and databases like Marketo, Google Analytics, Optimizely, and Amazon Redshift. Once they integrate the Segment API, their teammates in marketing, product, BI, and success can start sending their data to the tools they need with the flip of a switch.”
With the fresh funds, Segment plans to build new offerings for customers to query and build on their raw data, connecting to data warehousing services beyond Amazon Redshift like Postgres, MySQL and more. It has plans to collect new types of data, capturing experiences where customers interact with brands outside their products and also to increase their team strength to 100 from the current 50.
Reinhardt said, ” We don’t want to let too much out of the bag. But, the first thing we’re going to focus on is helping customers send their data to more databases and infrastructure systems to build internal analytics, store and query their raw data. We’ll also be expanding the types of data you can collect through Segment.” Further to the funding, Will Gaybrick, CFO of Stripe and General Partner at Thrive Capital will be joining the board of directors at Segment.
Currently, Segment processes 50 billion API calls per month. The company noted that its average customer connects to five different services on the platform and its average business customer connects to 11, adding Amazon Redshift. Reinhardt said that the company main competition is tag management tools such that from Google, and in-house engineering efforts. Also, its proud to have doubled its user base and tripled its revenue in the past year.