The financing—which included participation from existing investors Upfront Ventures and The Argentum Group—brings NuORDER’s total capital raised to $40 million since its inception in 2011, according to the Los Angeles-based company.
Follow Crunchbase News on Twitter
NuORDER has built a cloud-based product that’s made it easier for B2B sales to be conducted online, according to co-founder Olivia Skuza. That allows retailers to reach more buyers with less time and money, according to the company.
Skuza said that NuORDER has given brands in industries “a way to communicate and transact with wholesale buyers through a B2B e-commerce platform.” It claims to have replaced “outdated” processes such as printed catalogs and static spreadsheets with a SaaS platform that is accessible from anywhere on any computer or mobile device.
Its main goal with the financing is to invest heavily in product and engineering, and expand its offerings, according to Skuza. As it scales, NuORDER is also looking to sign more global enterprise brands.
“We were really focused on the brand side, and now we’re focused on the retailer experience,” she told Crunchbase News.
NuORDER would not disclose exact revenue figures; however, Skuza said it’s on track to double revenue growth in 2019. The company currently has more than 1,000 apparel “brand customers” and 400,000 retailers that conduct transactions on its platform. About $16 billion worth of gross merchandise volume has been sold through NuORDER, half of which came in the last year alone, according to the company. NuORDER charges brands an annual fee based on the volume of their wholesale business, and its services are free to retailers. The company said it achieved profitability in 2016 but chose “to reinvest back into the company in order to continue to accelerate and fuel our growth in 2017 and 2018.”
Last month, NuORDER unveiled a partnership with Nordstrom in which the retailers will use NuORDER to move their buying process online with the brands it supplies.
“B2B is going through what B2C went through some years ago,” Skuza said. “We’re at a massive tipping point.”
Recognizing a need to move quickly, NuORDER was able to hit a term sheet within 30 days of sending its first email announcing its intent to raise money, Skuza told Crunchbase News.
“We then had money in the bank in 90 days,” she added. “That was faster than we expected but speed is very important to us. This is a really hot space with a really large market opportunity.”
Indeed, the U.S. B2B e-commerce market continues to grow, according to research organization Forrester, which predicts sales will reach $1.18 trillion and account for 13.1 percent of all B2B sales in the US by 2021. That’s up from an estimated $889 billion in 2017.
Photo is of Oliva Skuza is courtesy of NuORDER
Illustration: Li-Anne Dias
Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.