To many people, e- commerce is synonymous with shopping on Amazon, but the reality is that a retailer can use a variety of channels to sell and market products, and many do. Productsup, a startup that helps retailers navigate that landscape, is announcing a $70 million growth round that underscores both the opportunity for building more e-commerce business management tools, but also Productsup.
European firm Bregal Milestone is leading the round for Berlin-based Productsup. The company has been around since 2010 and seems to have disclosed less than $24 million raised in that time, according to PitchBook data.
The valuation was not disclosed with this round, but given how little it has been raised in the last 12 years, according to the CEO.
The plan is to take on some funding to accelerate that with more investments into R&D and product development, more global deals, and M&A to bring in moreFunctionality and to enter new markets. According to Peters, the total addressable market for providing e-commerce channel management services is $11.4 billion.
The P2C category has taken flight and we have caused a serious shift in the market by working on technology only used by a few people. Peters said in an email that it was time to increase growth as more people are waking up to the message. The early stages were all about proving our technology worked, and now the market is waking up.
These are exciting times for the commerce world, with technology advancement like the metaverse on the horizon.
You need no more proof than the existence of thousands of e-commerce businesses, not just retailers but platforms for selling and tools to help sell better in the world of e- commerce. There are a number of companies in the same category as Productsup.
A search of the company's name and the word competitor says it all. There are so many rivals that they are gaming how to come in at the top of the search results for those doing comparative.
Peters tells me that his company's approach is different and better because it is moving away from a point solution and has built a platform to manage different aspects of e-commerce marketing and sales from a single place.
Most companies in our space offer solutions. He told me in an email that he was the only provider who could enable companies to realise their global potential. He said that Productsup enables them to manage this at scale and cover different use cases.
It's definitely in keeping with how a lot of the platform players are positioning their solutions today, moving away from point solutions, but it's also a crowded space. Shopware, a German company that raised a big round earlier this year, is one of the companies that play aggressively in this space.
The Covid-19 pandemic gave a major boost to the world of e- commerce, but what has been left in the wake of that is gradual returns away from social distancing and the rest. More choices for consumers, and more complexity for those trying to sell them.
The epidemic of commerce anarchy has accelerated, and companies are caught in a state of change. Local inventory ads have been brought back to the forefront for companies trying to reach shoppers after the Pandemic. The number of channels that an organisation needs to meet customers is growing. Retailers need a solution that can manage these channels in a seamless manner, as there inevitably will be new platforms around the corner.
Consumers have become increasingly concerned with issues such as ethical processes and are changing buying patterns to reflect this.
The company says that ARR grew by over 600% in the last twelve months, and that the gross revenue retention rate is 90% and the net revenue retention rate is 120%.
Cyrus Shey, managing partner of Bregal Milestone, said in a statement that their decision to partner with Productsup was based on its long-term sustainable trajectory as a mission-critical enterprise-grade commerce solution.
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