Gorgias announced that it has raised $25 million in Series B funding, bringing the startup’s pre-money valuation to $300 million.
When the company raised its Series A just over a year ago, CEO Romain Lapeyre (who founded Gorgias with CTO Alex Plugaru) told me that it works with e-commerce businesses to automate responses to their most common customer service questions, while also providing tools that help the support team respond more quickly and even convince customers to buy additional products and services.
That may not be surprising, given the overall growth in e-commerce during the pandemic. As Lapeyre put it, merchants saw “a huge boost” in online orders, which resulted in a similar rise in customer service requests — so they’re increasingly turning to Gorgias for help.
Initially, Lapeyre said merchants are just eager to respond to their customers more quickly and to make their support team more efficient. But over time, they become more interested in using customer support “as way to drive sales.” In fact, he recalled talking to one business that used to compensate its support team based on response time and now offers them a sales commission.