Lob Raises $50 Million in Series C Funding To Scale Its Direct Mail Platform
Lob, the leading direct mail platform, today announced that it has raised $50 million in Series C funding. Led by long-time investor Y Combinator Continuity, this new financing round brings Lob’s total capital raised to $80 million.
Over 8,500 customers, including Twitter, Expedia, Booking.com, Betterment, Clover Health, Root Insurance and ThredUp, are using Lob’s platform to automate direct mail workflows. One in two U.S. households have now received mail generated from Lob’s platform, and the company is on pace to triple the amount of mail it will send in a single year.
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To continue scaling its operations, Lob is expanding its print delivery network—already the largest in America. The Series C financing will help fund this endeavor, as well as support Lob’s plans to hire extensively across the board and more than double its employee count in 2021.
“Lob is leading the digital transformation of direct mail, a business process used by every company on Earth that has remained virtually untouched by software,” said Ali Rowghani, managing partner at Y Combinator Continuity, former Twitter COO and member of Lob’s board of directors. “Lob’s platform delivers exceptional value to some of the world’s largest senders of direct mail by lowering cost and improving deliverability, tracking, reporting, and ROI. Even for the most sophisticated senders of direct mail, Lob’s API-driven product is vastly superior to legacy approaches.”
Lob estimates that integrating its platform into direct mail workflows reduces execution time by 95%—from 90 days to less than a day—cutting costs and improving data quality. At the same time, Lob helps growing companies embrace direct mail as a brand-new channel to interact with their audiences.
“Lob is modernizing the way companies send direct mail,” said Leore Avidar, Lob’s CEO and co-founder. “The tools to track, personalize and send timely mail exist, and companies can utilize this channel the same way they do SMS and email.”
Lob has invested extensively in building a proprietary Print Delivery Network that provides customers with on-demand access to enterprise-ready print infrastructure and empowers them to personalize content in real time. Some of Lob’s customers are seeing a 20% increase in consumer retention through timely personalization.