SAN FRANCISCO — Segment, a customer data infrastructure company, has raised a new funding round of $175 million. The Series D round was co-led by existing investors Accel, GV, and new investor Meritech Capital. Thrive Capital, Y Combinator Continuity, and eVentures also participated in the round, as well as new investor Sapphire Ventures.
For years, companies have relied on Customer Relationship Management (CRM) to understand their customers, making it the centerpiece of customer data stacks for offline sales models. However, in today’s digital era, CRM is no longer enough. Companies must use dozens of business applications in their customer data stack, but they don’t have the data infrastructure necessary to integrate these applications seamlessly or respect customer privacy preferences consistently.
Segment’s technology empowers businesses to deliver seamless, personalized customer experiences across every channel and touchpoint, while also respecting user privacy and preferences through first-party data.
The funding round brings Segment’s total amount of capital raised to $284 million and will be used to invest in key areas of growth, including:
- Accelerating global expansion: The company plans to use the new round to open multiple new offices across North America, EMEA, and Asia-Pacific while significantly growing its team, which currently counts over 350 people in San Francisco, New York, Vancouver and Dublin.
- Further developing Customer Data Infrastructure (CDI) as the technical foundation for customer-first businesses: Today, thousands of businesses across 71 countries rely on Segment to be the core foundation for their first-party customer data, enabling them to deliver highly relevant, connected experiences through every customer touchpoint. Segment will use the new funds to accelerate the development and adoption of CDI.
- Investing in go-to-market activities and the Segment partner network: The company will invest in customer growth across the board, with a particular focus on expanding its enterprise customer base, which already includes established industry leaders such as Intuit, IBM, 21st Century Fox, Levi’s, VMware and Meredith. Segment will also invest in further expanding its partner network.
Segment’s Customer Data Infrastructure can capture customer interactions from every business touchpoint, ensure that the data is accurate and consistent across the organization, and automatically route that data to hundreds of business applications across a company’s entire customer data stack.
With a centralized infrastructure to route first-party customer data to whichever application requires it, companies of all sizes are able to build better products, make smarter business decisions, exceed customer expectations, and ensure that the privacy of their customers is consistently met.
“CRMs and their associated suites are no longer able to deliver great customer experiences,” said Peter Reinhardt, co-founder and CEO of Segment. “With the rapid proliferation of new digital tools and customer touchpoints, the global market opportunity for Customer Data Infrastructure is huge. We are excited about this latest milestone, which will allow us to accelerate international growth and help even more businesses across the world put their customers first.”