For many people, e-commerce is synonymous with shopping on Amazon, but the reality is that a retailer has the ability to use a bunch of different channels to sell and market products, and many do. A startup called today products to the topwhich has built a platform to help retailers navigate this landscape, announces $70 million in funding — a growth round that includes the opportunity to build more e-commerce business management tools as well as underscoring Productsup’s own traction in the marketplace, where it already has, it counts more than 900 brands among its customers, including IKEA, Sephora, Beiersdorf, Redbubble and ALDI.
European firm Bregal Milestone is leading the round for the Berlin-based Productsup, which also features former backer Nordwind Capital. The company has been around since 2010 and appears to have reported less than $24 million in revenue during that time PitchBook data, while Crunchbase put the total at $20 million.
Vincent Peters, the CEO (the three co-founders are Johannis Hatt, Kai Seefeldt, and Chief Innovation Officer Marcel Hollerbach), told TechCrunch that the rating wasn’t disclosed this round, but given how little it’s published over the past 12 years was raised, which is a strong indication that the company has grown well under its own steam.
Plans are now in place to raise some funding to accelerate this with more investment in R&D and product development, more global operations and mergers and acquisitions to introduce more functionality and expand into new markets. Citing figures from Constellation Research, Peters points out that the total addressable market for the deployment of e-commerce channel management services is $11.4 billion.
“We used to work on technologies that only a few people use, but since then the P2C category has picked up steam and we’ve caused a serious shift in the market. As more and more people become aware of our message, it’s time to fuel growth,” Peters said in an email interview. “Our strong numbers back us up on this one, as they’ve proven the cadence is picking up, people are talking and customers are embracing our strategy – and we’ve had fantastic results. In the early stages it was just about proving that our technology works and is adaptable, and now the market is waking up.”
“With technological advances like the Metaverse on the horizon, these are exciting times for the trading world,” Hollerbach said in a statement. “We’re about to enter a new era of innovation, so our priority is to ensure companies are able to manage the proliferation of shopping channels and experiences to become the disruptors – not the disruptors.”
The world of e-commerce is definitely complex and fragmented – you need no more evidence than the mere existence of thousands of e-commerce companies, not just retailers but also sales platforms and tools to help you sell better. But that also means there are a number of companies that offer services in the same category as Productsup.
A Google search of the company name plus the word competitor says it all. The results include other companies with the tagline “We are your #1 competitor” referencing competitors: There are so many competitors out there that they are trying to get to the top of the search results for those doing comparison shopping for e-commerce active solutions.
Peters tells me that his company’s approach is different and better because it has moved away from the idea of a point solution and has built a platform to manage various aspects of ecommerce marketing and sales from a single place.
“Most of the companies in our field offer individual solutions. We’re the only provider that can enable companies to reach their global potential,” he told me in an email. Productsup, he said, allows them to manage this at scale, covering various use cases such as feed management, seller and vendor onboarding, and product content syndication. “We enable companies to do this globally, rather than having to worry about individual channels or regions.” Indeed, these regional and channel silos are one of the biggest pain points in digital commerce in general, and a reason why marketplaces like Amazon are gaining ground win, since they are inherently one-stop shops.
All of this is definitely in line with the positioning of many SaaS platform providers today (moving away from point solutions is a big theme, for example in cybersecurity and workplace productivity), but it’s also a crowded space. companies like Shopwareanother German player who also scored a big round earlier this year, and even Salesforce is playing aggressively in this area.
While the Covid-19 pandemic has undoubtedly given the world of e-commerce a major boost, what’s left of this (hopefully!) slowdown is – and certainly a gradual return away from social distancing and the rest – is, in Peters’ words, “trade anarchy”. In other words, even more choice for consumers and more complexity for those trying to sell to them.
“First, businesses are in a state of flux, facing a trade anarchy that has been accelerated by the pandemic,” he said. “Today, brands, retailers and online platforms don’t know if consumers are on TikTok, Facebook, Instagram or a combination of all three. Additionally, in-store shopping has returned in the wake of the pandemic, bringing local inventory ads back to the fore for businesses trying to reach shoppers. The number of channels companies need to reach customers is increasing in both complexity and volume. To thrive in this ever-changing landscape, retailers need a solution that can seamlessly manage these channels.” And that will include any new platforms that are around the corner, as is inevitable.
There are other issues that go beyond the simple process of being able to find and buy something online. “Consumers are increasingly concerned with issues such as sustainability and ethical processes and are changing buying behavior to reflect this,” he said. “Brands that can’t live up to that will suffer.”
The company says that over the past 12 months, ARR has grown by over 60%, gross revenue retention rate by 90%, and net revenue retention rate by 120% — though it doesn’t disclose actual numbers.
“Our decision to partner with Productsup was based on their long-term, sustainable journey as a mission-critical enterprise commerce solution,” said Cyrus Shey, managing partner of Bregal Milestone, in a statement. “While alternative vendors mostly offer point solutions, Productsup uniquely addresses the needs of the evolving retail market for a single view of all product information value chains, providing seamless end-to-end product data control – across all global channels and in real-time. Time.”
Productsup raises $70M to help retailers navigate sales strategies in the choppy world of e-commerce – TechCrunch Source link Productsup raises $70M to help retailers navigate sales strategies in the choppy world of e-commerce – TechCrunch