ContactMonkey, an internal email communications platform, completed a Series A investment of US$55 million from Updata Partners, a leading growth equity firm.
The funding comes as employee engagement is more critical to enterprises than ever: the BBC reported that 59% of global workers report being not engaged at work, which can lead to ‘quiet quitting’. A Gallup report found that disengaged employees cost the global economy around US$8.8 trillion.
“At ContactMonkey, we believe it is vital that companies improve their communications with their employees and facilitate a strong, collaborative and transparent culture, even across remote workplaces and disparate teams,” said Scott Pielsticker, CEO and Founder, ContactMonkey. “We’re looking forward to partnering with the Updata team to grow our teams and solutions as more companies realise how critical their internal communications are to their business.”
Pielsticker founded the company in 2010. The company was bootstrapped, profitable and has grown 330% in the past three years with best-in-class unit economics. It is taking on this investment to best scale and meet the rapid demand for its solutions in the market.
In an evolving workplace landscape, ContactMonkey is a one-stop solution for connecting and engaging employees from anywhere. The platform seamlessly integrates with users’ preferred email client, including Microsoft Outlook and Gmail as well as SMS, Microsoft Teams and Human Resource Information Systems (HRIS) such as Workday, ADP, SAP and more. This versatility empowers communicators to reach every corner of their organisation, ensuring that essential company announcements, life-saving alerts and critical updates are delivered promptly to all employees.
Through powerful engagement analytics, ContactMonkey allows users to build segmented employee lists, collect real-time feedback and leverage granular email metrics. These insights empower employers to understand what truly resonates with their teams, enabling them to refine communication strategies for optimal engagement.
This new investment from Updata will help ContactMonkey double down on its success in Canada, Europe, the US and Australia. ContactMonkey will also look to increase its workforce and expand internationally to bring its solutions to new companies across industries and around the world. The company has 80 current employees and expects to double this number in 2024.
Updata Partners works to help bootstrapped CEOs to scale, partnering with the software industry’s emerging leaders.
“ContactMonkey provides a valuable solution as employee engagement becomes a mission-critical issue for the C-suite,” said Braden Snyder, Partner at Updata. “It is impressive what ContactMonkey has achieved as a bootstrapped company, and we are eager to partner with Scott and the team to scale its robust solutions globally.”
As part of the investment, Updata Partner Braden Snyder and Operating Partner, Sloan Gaon, will join ContactMonkey’s Board of Directors.
The funding is the latest in a series of announcements in recent months: Deloitte named ContactMonkey to its Fast 50 and Fast 500 list and The Globe and Mail ranked ContactMonkey as one of Canada’s Top Growing Companies.
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