For many people, e-commerce is synonymous with shopping on Amazon, but the reality is that a retailer has the ability to use a range of different channels to market and sell products, and many do. Today, startup ProductUp, which has built a platform to help retailers navigate this landscape, is announcing a $70 million round of funding, a development round that will also offer more tools to manage an eCommerce business. Highlights the ability to create your own product. A marketplace that already has over 900 brands for its customers, including IKEA, Sephora, Beiersdorf, Redbubble and ALDI.
European company Bregel Milestone is leading a round for Berlin-based ProductUp, which also includes former lender Nordwind Capital. The company has been around since 2010 and has raised less than $24 million in that time, according to PitchBook, with Crunchbase estimating the total at $20 million.
Vincent Peters, CEO (the three co-founders are Johannes Heitt, Kai Seifeld, and Chief Innovation Officer Marcel Hollerbach) told gaming-updates that the round’s scores were not disclosed, but noted that this has been so low in the past 12 years. a strong indication that the company is growing well on its own.
There are now plans to raise funds to increase investment in research and development and product development, increase global deals and expand M&A functionality, and expand into new markets. Citing data from Constellation Research, Peters points out that the total address market for e-commerce channel management services is $11.4 billion.
“We used to work on technology that only a small number of people used, but since then the P2C category has become popular and we have seriously changed the market. Now that more people understand our message, it’s time to drive growth,” Peters said in an email interview. IIn this regard, we are supported by our strong performance as it proves that synergies are developing, people are talking and customers are accepting our strategy – and we have achieved excellent results. In the early stages, it was about proving that our technology works and adapts, and now the market is waking up.
“With technological advances like the Metaverse on the horizon, this is an exciting time for the business world,” Hollerbach said in a statement. “We are about to enter a new era of innovation, so our priority is to ensure that businesses are equipped to manage the distribution of retail channels and have a revolutionary experience, not a disruptive one.”
The ecommerce world is certainly complex and fragmented – you need more evidence than the existence of thousands of ecommerce companies, not just retailers, but trading platforms and tools to sell better. But it also means that there are many companies that provide services in the same category as ProductUp.
A Google search for the company name as well as the word “competitor” speaks for itself. The results include other companies whose “we are their #1 competitor” slogans are in line with competitors: many competitors rely on e-commerce solutions to rank first in search results for buyer comparison.
Peters told me that his company’s approach is different and better because he moved away from the idea of a point solution and created a platform to manage various aspects of e-commerce marketing and sales from one place.
“Most companies in our region offer complex solutions. We are the only supplier that can help companies realize their global potential,” he told me via email. With ProductUp, they can manage it at scale and handle different use cases like flow management, vendor and vendor onboarding, product content syndication, he says. “We allow companies to implement this globally, instead of having to worry about individual channels or regions.” These regional and channel silos are actually one of the biggest challenges in digital commerce in general, and one of the reasons marketplaces like Amazon gain so much ground is because they are a one-stop shop in their own right. store.
All this certainly fits in with how many SaaS platform players are positioning their solutions today (far from the essence of the solution – this is a big topic, for example, in cybersecurity and workplace productivity), but it’s a big deal. Companies like Shopware, another German player that raised a big round earlier this year, and even Salesforce are active in this area.
While the Covid-19 pandemic has undoubtedly given the e-commerce world a big boost, what’s left (hopefully!) are the effects of a slowdown – and at least a gradual return to social distancing and such. Commercial anarchy,” according to Peters. In other words, even more opportunities for consumers and more complexities for those who are trying to sell them.
“First of all, companies found themselves in a state of change, facing the commercial chaos that accelerated the pandemic,” he said. “Today, brands, retailers and online platforms don’t know if consumers are using TikTok, Facebook, Instagram, or a combination of the three. In addition, in-store shopping has returned since the pandemic, with local product advertising coming to the fore for companies trying to attract shoppers. The number of channels needed to satisfy customers is increasing in both complexity and volume. To succeed in this changing environment, retailers need a solution that can seamlessly manage these channels. And that includes all the new platforms that are, in fact, just around the corner.
Add to that, he says, other challenges beyond the simple process of finding and buying something online. “Consumers are increasingly concerned about things like sustainability, ethical procedures and changing their buying patterns to reflect this,” he said. “Brands that can’t respond to this will suffer.”
The company says ARR has grown more than 60% over the past 12 months, with gross revenue holding at 90% and net revenue at 120%, although actual numbers were not disclosed.
“Our decision to partner with ProductUp was based on a long-term sustainable path as a business-critical business-level commerce solution,” Cyrus Shay, Managing Partner of Bregel Milestone, said in a statement. “By offering alternative solutions for vendors, ProductUp uniquely addresses the needs of the emerging retail market for a single view of all value chains with product information and seamless end-to-end access to all global channels and all product data. Provides control. in real time”.