UPDATED 13:33 EST / JANUARY 18 2019

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Microsoft backs $51.5M round for business messaging startup Zipwhip

Just as team chat services such as Slack have taken over the workplace, texting is emerging as the go-to communications medium for consumers. Seattle-based Zipwhip Inc. is developing tools to help companies address this shift and automate their operations in the process.

The startup today announced that it has raised $51.5 million in funding expand its market presence. The round was led by Goldman Sachs Group Inc. with participation from several returning backers, including Microsoft Corp.’s M12 venture capital arm.

Zipwhip operates a cloud service that enables companies to add texting support to the existing phone numbers they use for customer support, sales and other consumer-facing functions. The platform processes incoming user messages through direct integrations with major U.S. carrier networks. As a result, consumers don’t have to download a dedicated app to interact with a company.

Zipwhip claims that its service can fill a major gap in organizations’ customer engagement strategies. A survey that the startup released late last year found that 87 percent of consumers prefer texting to communicating via email or phone.

Besides improving engagement, Zipwhip promises to help companies streamline their user-facing business activities. The startup’s service makes it possible to create automated replies that are triggered if a text contains a certain keyword, such as “subscription renewal,” and lets workers respond to multiple inquiries at once. Companies can also create a library of readymade message templates to help representatives answer customer texts more effectively.

Zipwhip claims that more than 10,000 businesses use its service, including about 100 enterprises. Ford Motor Co., Verizon Communications Inc. and ESPN Radio are some of the names on the list. A sizable portion of Zipwhip’s customers came aboard in 2018, during which the startup claims to have increased revenues by 80 percent on a year-over-year basis.

Zipwhip will use the new funding to add more features with a focus on better addressing the enterprise market. In a blog post today, Chief Executive John Lauer wrote that one of the startup’s prioritizes will be building out tighter integrations with customer relationships management platforms and other outside services.

Zipwhip has raised more than $91 million to date.

Photo: Zipwhip

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