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Commercetools presses gas as it gauges IPO prospects

Illustration of an infinite stack of Wall St. bulls.

Illustration: Shoshana Gordon/Axios

Commercetools, an e-commerce API provider, is positioning itself for an initial public offering within the next 12 to 24 months.

Why it matters: Conditions for IPOs have improved markedly, but there likely won't be a near-term deluge.

What they're saying: "I've got public company experience and the goal here is to get us ready and set up for when the right opportunity is there for us to go public," CFO Dan Murphy says.

  • This year, Commercetools plans to focus on growth and ensuring "we have the right plumbing in place to be able to scale our infrastructure," he adds.

The big picture: Amer Sports and Reddit went public this year, while Birkenstock, Instacart and Klaviyo made their public debuts in the latter part of last year.

  • Digital rewards provider Ibotta today announced the launch of its IPO roadshow, with an estimated share price of $80 at the midpoint range.

How it works: Commercetools helps retailers to build custom payment, checkout, marketplace and other features.

  • The company plans to grow through additional product offerings and B2B expansion.
  • "Reliability, flexibility, scalability, those are all kind of key things for enterprise-level customers," Murphy says.

Catch up quick: The company raised a $140 million Series C in 2021 led by Accel, placing the company's value at the time at around $1.9 billion.

  • Insight Partners and REWE Group participated in the round.
  • The company has raised $305 million to date.

Zoom in: Commercetools has plenty of capital on its balance sheet, Murphy says, adding that while the company can reach profitability "relatively easily," it is focused on growth.

By the numbers: Commercetools said its global gross merchandise value hit over $30 billion last year.

  • It reported reaching $100 million in annual recurring revenue last year.
  • In the Americas, one of its fastest-growing regions, ARR increased 65%.

What's next: A spokesperson says the company will monitor a variety of factors, including how recently public companies perform after their IPOs.

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