Ankorstore has raised a Series C funding round. It took Ankorstore two years to reach a post-money valuation of $2 billion. The company has a marketplace for independent retailers.
Independent brands can sell their products at Ankorstore. Retailers can sell those products to their own customers. It is a B2B2C play that focuses on offline sales at the end of the chain.
You can find a lot of things on Ankorstore, from household supplies to maple syrup, candles, headbands, bath salts and stationery items. Non-perishable groceries, beauty products and items for your home are some of the things that have been working well for some.
It has been working well for the company. There are 200,000 retailers using the marketplace. When Ankorstore raised its Series B, the company said it was working with 50,000 shops and 5,000 brands.
This leads us to the funding round. Tiger Global and Bond led the round. Some existing investors put more money on the table.
There aren't a lot of companies in the space. Faire, a U.S.-based company that has raised over $1 billion, has recently started its European expansion. Wholesale marketplaces in Europe are operated by Creoate and Orderchamp.
There is a marketplace without inventory.
France, the U.K., Germany, the Netherlands and Sweden are where Ankorstore has teams. Products are sold in 23 European markets. There are no hidden fees for retailers to pay after 60 days. Ankorstore helps retailers focus on service while the startup takes care of procurement.
The brands that list their items on Ankorstore give a 10% cut on each transaction after a higher 20% cut on the first order through Ankorstore.
Some brands still have direct deals with retailers. Ankorstore doesn't prevent brands from hiring sales people.
The business model of wholesale marketplaces is beautiful. Ankorstore doesn't own any inventory or have a warehouse. The company only facilitates transactions between brands and retailers.
Nicolas Cohen, co-CEO and co-founder, told me that they are closer to LinkedIn in the way they operate.
As the platform gets bigger, there are some strong network effects. Ankorstore expects to expand to new categories.
The startup has a deal with the shipping company. The company has not done much when it comes to warehousing solutions for small brands. It is another opportunity down the road.
Ankorstore has 400 employees and a lot of money in its bank account, so it could act as the unifying layer of the industry.
Fuel Venture led the $5 million seed raised by independent retailer platform Creoate.
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