Shop Circle raises $65M to shop for apps
E-commerce software player Shop Circle raked in $65 million in funding, accelerating efforts to become the go-to place for merchants running stores online.
Why it matters: U.S. e-commerce sales have the potential to cross $1 trillion this year, according to market research firm eMarketer. As retailers vie for online shopping dollars, they'll need an ecosystem of tools to help them capture that market share.
Details: The new funding was led by NFX and QED Investors, with 645 Ventures, FirstMinute Capital and Tripoint Capital participating.
- The pre-A round will help London-based Shop Circle build its portfolio of e-commerce apps, it said.
- “We want to double down on our internal technology stack and keep bringing new tools under the hood,” co-founder and CEO Luca Cartechini tells Axios.
- Shop Circle aims to double headcount by year-end, and 2x revenue by the second half of 2022.
What’s next: With six app acquisitions already under its belt, Shop Circle will acquire more apps to expand in the areas of marketing, conversion, automation, backend store and order management and store building, COO Gian Maria Gramondi tells Axios.
- It acquires apps that come with revenue-paying clients, contributing to the company's overall top line, he says.
- Shop Circle is eyeing growth through partnerships, paid advertising, SEO, content and social media, as well as working closely with Shopify’s app store to make sure all its listings are optimized, Gramondi says.
How it works: Founded last year, Shop Circle operates a portfolio of e-commerce apps that help merchants with back-office tasks like referrals, supply chain logistics, order management automation, and setting shipping rates.
The bottom line: The company hopes to expand its tools beyond Shopify so they can be used in all e-commerce marketplaces.
- “We really want to consolidate this position where we buy software, not only for Shopify but also for other platforms,” Cartechini says.