Developers of software tools for the e-commerce industry are attracting major funding this year on the heels of some impressive growth stats.
The latest large round comes from Salsify, a provider of tools for retailers and brands to more efficiently beef up their e-commerce presence. The Boston-based company announced it raised $200 million in a Series F round led by TPG.
Permira‘s Growth Opportunities Fund, Neuberger Berman and Cap Table Coalition joined the financing, which brings Salsify’s valuation to $2 billion. The round brings total funding to date for the 10-year-old company to over $450 million.
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The financing follows a year of sharp growth for Salsify, which said it generated over $110 million in annual recurring revenue in 2021, up over 50 percent from 2020. The company counts over 1,200 customers across the globe, including big brands like Mars, L’Oreal and Coca-Cola.
The large Salsify round comes amid a period of active venture investment in the e-commerce software space. Using Crunchbase data, we identified a sample list of a dozen companies in the sector that have raised sizable rounds in this year, posted below:
Salsify and the companies on our sample list alone collectively raised over $1.7 billion so far this year. Recipients of the largest rounds include:
- Austin-based Cart.com, developer of a platform for brands to accelerate online growth, raised $240 million in a February funding round, after posting revenue growth of over 400 percent for the prior year.
- Lehi, Utah-based Route, a provider of package-tracking tools for online orders, raised $200 million in a January Series B at a $1.25 billion valuation.
- Toronto-based Shoplazza, which pitches itself as a commerce platform aimed at helping online brands “go borderless,” raised $150 million in a January Series C round led by SoftBank Vision Fund.
Salsify, for its part, markets its offering to brands, e-commerce retailers and distributors. For brands, its tools allow them to customize product information that shows up at online retailers.
For retailers, the platform helps them more quickly access accurate and appropriately targeted product information.
Illustration: Dom Guzman
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