Online Retail is estimated to be a $25 trillion business globally and is growing at an increasingly fast pace. With retailers competing with each other to increase their market share, they are banking on technology to stay ahead of the curve in order to provide a top-notch experience to their customers both online and offline.
commercetools – a SAAS company headquartered in Munich, is making waves in retail and tech space. It enables brands to create engaging, headless commerce experience across multiple channels and has raised EUR 130 million (USD $145 million) from Insight Partners to support its growth in new markets, including the United States, Asia-Pacific, and Europe.
They have raised funding after a rapid growth in the last 18 months, as the company opened new operations in the UK and Asia-Pacific, while securing roster of brands as its users, including the likes of Audi, Bang & Olufsen, Carhartt, Yamaha, Cimpress, and Wizards of the Coast, to name a few.
Commercetools is truly pioneering the use of microservices, APIs and cloud to enable its users to move to an actually modern commerce architecture with great speed and agility. Its API-first solution helps brands create an engaging experience for customers across multiple touchpoints. Bigger brands are gravitating towards commercetools for its agile and componentized architecture. It significantly reduces development time and amount of resources required to migrate from their conventional retail software to a modern, headless commerce technology.
In contrast to other SAAS companies such as Shopify, (coincidentally, also funded by Insight) that focuses on providing e-commerce tools to smaller retailers with a similar API approach, commercetool is geared towards much bigger retail companies that generate yearly revenue of more than $100 million. As part of the funding round, Richard Wells and Matt Gatto, seasoned technology investors and Managing Directors at Insight Partners will be taking their seats as the Board of Directors at commercetools.
“With a strong track record of investing in retail software leaders, we are excited to have the opportunity to invest in commercetools and help them scale up internationally. In our opinion commercetools represents the next wave of enterprise commerce software and has the potential to unlock powerful innovation and growth within the e-commerce sector,” said Richard Wells.
Insight Partners, the company that invested in commercetools, is well known as one of the top investment firms in the technology space with 370 investments thus far and has had 93 exits, including social media giant Twitter, micro-blogging platform Tumblr, online food ordering site Delivery Hero, Shutterstock, and others. In Asia, Insight has also invested in Chinese e-commerce platforms, including JD.com and Alibaba.