Brevo’s Bold Move: $583M Funding to Challenge CRM Titans
Paris-based customer relationship management (CRM) company Brevo has achieved unicorn status, securing €500 million ($583 million) in fresh equity funding. This substantial investment is set to bolster Brevo’s efforts to compete with industry leaders like HubSpot and Salesforce, not only in Europe but also in the United States.
From Humble Beginnings to Industry Contender
Founded in 2012 as Sendinblue, Brevo initially offered email marketing solutions tailored for small businesses. Recognizing the evolving needs of the market, the company expanded its services to cater to mid-market clients and rebranded to reflect its comprehensive product suite. This strategic shift has been fruitful, with Brevo now serving over 600,000 customers, including prominent names such as Carrefour, eBay, and H&M.
Targeting the Lucrative U.S. Market
Currently, the United States accounts for 15% of Brevo’s revenue, positioning it alongside France and Germany as one of the company’s top markets. However, CEO Armand Thiberge is ambitious about increasing this share. The U.S. represents 50% of the global market, so it should constitute 50% of our revenue, Thiberge stated. To achieve this, Brevo plans to allocate a significant portion of the new funding towards U.S. expansion.
Impressive Financial Trajectory
Brevo’s financial performance has been on an upward trajectory. After surpassing $100 million in annual recurring revenue (ARR) in 2023, the company has already exceeded its 2025 goal of €200 million in ARR ahead of schedule. Looking ahead, Brevo aims to reach €1 billion in ARR by 2030. While this target is ambitious, especially compared to Salesforce’s projected $41.55 billion in revenue for 2026, Brevo is confident that its unicorn status and the recent equity funding will enhance its market presence and credibility.
Strategic Investments in AI and Acquisitions
The recent funding will support Brevo’s plans to invest €50 million in artificial intelligence over the next five years. Additionally, the company intends to continue its growth through acquisitions, having already completed 11 to date. With a workforce of 1,000 employees, Brevo is poised to leverage these investments to enhance its product offerings and market reach.
A Global Vision with a European Foundation
Brevo’s latest funding round has diversified its cap table, with new investors General Atlantic and Oakley Capital each acquiring 25% stakes. Existing investors Bpifrance and Bridgepoint retained 24% each, while management and employees hold the largest share at 26%. This global investor base aligns with Brevo’s ambition to establish itself as a leading European CRM provider capable of competing with U.S. giants through product excellence.
Balancing Product Complexity and User Simplicity
CEO Thiberge emphasizes the importance of developing a product that is both comprehensive and user-friendly. Whoever has the best product wins, and it’s a race to see who can make the product that is both the most complete and the easiest to use, he noted. Catering to a diverse clientele, from mid-market companies to small businesses, presents challenges, but Brevo’s approach has proven successful.
Expanding Beyond Email Marketing
Brevo has significantly broadened its service offerings beyond email marketing. The company now provides an all-in-one platform that includes marketing automation, CRM, customer data management, and communication channels such as SMS, WhatsApp, live chat, push notifications, and integrated sales calls. Many of these features are enhanced by artificial intelligence, either through integrations or in-house developments.
A Strategic Approach to Growth
Brevo’s growth strategy includes both organic development and strategic acquisitions. The company anticipates that acquisitions will contribute 45% of its €1 billion revenue target for 2030, indicating an extensive plan for future expansion.
