eCommerce Firm Rokt Looks to IPO After $2.4B Valuation

eCommerce startup Rokt’s valuation has risen to $2.4 billion following a new funding round.

The company announced the new valuation Monday (Dec. 5) following a secondary funding round led by investment firm Square Peg and asset manager Wellington Management, and says it is preparing to go public.

Last year, Rokt was valued at $1.95 billion following a $325 million Series E round.

“Despite broader market declines in valuations, we continue to see rapid growth in Rokt driven by new eCommerce partners and an uplift from advertisers,” Rokt CEO Bruce Buchanan said in a blog entry.

“Due to the challenging economic climate, eCommerce companies are focusing on more relevant customer experiences that improve economics and deliver new revenue.”

Buchanan added that this has further fueled his company’s growth, bringing it investor support as it looks to an initial public offering (IPO).

Founded in Australia and based in New York City, Rokt uses artificial intelligence and machine learning to study online shoppers and their engagement with companies. Its clients include AMC Theatres, PayPal, Uber, Hulu, Staples, Lands’ End and HelloFresh.

The company’s new valuation comes as retailers have begun to look to consumer shopping and spending habits to reshape the retail experience, according to “Navigating Big Retail’s Digital Shift: The New Payments Strategy Evolution,” a PYMNTS and ACI Worldwide collaboration.

“More than 66% of retailers are shifting resources toward more convenient payment options and a broader range of payment choices,” the report says, while also finding that 30% of U.S. retailers and 37% in the U.K. were searching for “the right mix of digital tools to meet their customers’ experience requirements.”

The report examines both “needs” — things like frictionless checkout and the most popular payment methods — as well as “wants” as expressed in an analysis of retail shopping data, including more strategic use of QR codes, mobile apps, and real-time payments.

According to the study, 70% of executives surveyed believe that “preferences for specific conveniences may lead consumers to favor one merchant over another,” a reality that many industry executives saw as an indication that consumer loyalty will increasingly be “highly dependent on these key features in-store.”