A five-year-old company providing composableAPI-driven technology for digital commerce secured $140 million in Series C funding.
The Seattle-based modular and headless commerce company offers more than 300 commerce APIs and associated framework to connect a company's sales channel to one place and the ability to use the entire commerce platform or individual products.
While similar companies target small businesses, fabric is going after bigger brands that have difficulty creating good online stores, in part because they are running their online commerce via mega, monolith legacy software that CEO Faisal Masud said "anchors" them into.
The first headless platform built by Amazon was the first where they could be flexible as the need arises. You don't have to replatform, but you should move to a microservice approach.
Masud thinks that the wrong platform for anyone else doing business-to-business, over $50 million in gross merchandise value annually or looking for fewer restrictions, flexibility and composability of their sales channel is theshopify.
The company has raised a third round in a year, following a $100 million Series B in July and a $43 million Series A in February.
The new capital gives fabric $293 million in total funding raised to date.
Much of the organic growth is attributed to the quick succession in funding rounds. Since the company's seed round in 2020, fabric has gone from two customers to more than 60 today, and has grown its workforce six times.
The seed round was the last time fabric drove the investment process. The investors were leaning in after that. The most recent round was the result ofpent up investor interest and growth beating the company's plans again.
Masud said that SoftBank is investing in a big way in commerce. The timing is important for us. The product and the team are validation of the product and the market right now. We don't want to be left behind due to capital or product constraints because there is going to be rapid development in this space in the next 12 to 18 months.
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In the year 2021, fabric experienced 4.5 times year over year revenue growth and launched a platform for online sales transactions for manufacturing, distribution or wholesale businesses.
The company brought on Karen Brewer, who previously worked at Cisco, as its chief marketing officer, and also brought on a former Amazon executive as its chief operating officer. The chief revenue officer announcement was teased by Masud.
Masud plans to use the new capital to accelerate product development and geographic expansion. He wants to expand into Europe and the Middle East and is looking to internationalize fabric. The funds will be used to hire more technology and to build a robot team for revenue and sales.
Robert Kaplan, investment director at SoftBank Investment Advisers, is joining the board of directors.
Retailers need to meet modern consumers wherever they are, whether online, offline, mobile, social, or any future entry point, Kaplan said in a written statement. We believe that fabric has built the industry's best modular commerce platform and accompanying commerce applications to give merchants unparalleled power and flexibility, all in a manner that reduces the pain of migrating over from legacy, outdated commerce platforms.
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