AppHub launches with $60 million in funding to develop Shopify apps

  • AppHub launched on Thursday with $60 million in funding from Silversmith Capital Partners.
  • The startup’s goal is to acquire and build third-party apps for platforms like Shopify.
  • It currently has 20 e-commerce applications in its portfolio.

AppHub, a startup that builds and acquires apps developed for online sellers, launched Thursday with $60 million in funding from Silversmith Capital Partners.

The company’s listing comes as e-commerce growth normalizes following a boom in online spending during the pandemic. Running a successful online business has also become increasingly complex.

The founders of AppHub have all founded their own startups. Co-CEO Kris Eng co-founded Tenth Avenue Commerce, a holding company that owns and operates a collection of 15 e-commerce brands. Arjun Batra, the other co-CEO of AppHub, co-founded the lending platform Lendable. And Wilson Lee helped build the Darkstore delivery platform, which built the technology used by super-fast delivery startup FastAF.

Eng told Insider that the past entrepreneurial experience of AppHub’s founding teams gave them an edge when it came to working with online sellers and meeting their needs.

“It gave us insight into the pain points traders face every day,” he said.

Eng, Batra and Lee have been building third-party apps for Shopify’s App Store together for several years, but decided in 2021 that they could find even more success if they approached the opportunity more formally. They created the company that would be called AppHub in August.

“We decided there was a huge opportunity beyond what we were doing if we could bring entrepreneurs together and be an even stronger partner for Shopify and, quite frankly, every e-commerce business out there,” said Eng.

The Shopify App Store is home to over 7,000 apps that merchants can install on their stores to help them with functions like store design, product sourcing, search engine optimization, marketing, and more. shipping. Shopify builds some of its own apps, but it largely relies on third-party apps like AppHub to populate its app store. The average Shopify merchant uses six apps to run their business, the company previously told Insider.

Many apps in AppHub’s portfolio are aimed at Shopify merchants, but some work with other platforms, including BigCommerce, Magento, and WooCommerce. Some apps in AppHub’s portfolio also work with online sellers who use their own custom websites and not a major e-commerce software provider.

Kris Eng, Arjun Batra and Wilson Lee are the co-founders of AppHub

From left to right, Kris Eng, Arjun Batra and Wilson Lee are the co-founders of AppHub.

AppHub


AppHub has 20 apps on its platform so far, including recent acquisitions Orderbump, a one-click upsell app, and ViralSweep, which allows merchants to offer sweepstakes and other contests to their customers. . According to the company, its apps are used by 10,000 merchants so far. AppHub plans to use its funding to continue acquiring apps and building more in-house.

“Shopify can’t build everything”

While the rise of platforms like Shopify has made it easier than ever to launch an online store, today’s entrepreneurs have a dizzying array of problems to solve, complex supply chains and fast delivery to customer acquisition challenges.

For many e-commerce businesses, growth has slowed as the world opens up. Shares of Shopify, for example, which peaked at around $1,762 per share in the fall, have fallen to around $600.

“The long-term trajectory for things like e-commerce as a percentage of overall trade has basically reverted to the long-term trend line which still represents consistent growth,” said Sri Rao, general partner at Silversmith.

“There are certainly


volatility

in things like stock prices and valuations of companies involved in these activities,” he added. “But we as investors are really long-term oriented.

The founders and investors of AppHub say there is now a great appetite for technology that can make life easier for entrepreneurs, given the macro trends facing online sellers.

Recently, as conversations about the relationship between developers and powerful platforms have intensified, many developers are choosing to diversify the platforms they work with instead of going all-out on Shopify. For example, developers may fear that if their apps become popular enough that Shopify will decide to build a similar technology solution in-house.

Batra said being platform independent is an advantage for AppHub in working with merchants.

“We can react very well to what the platforms are doing,” he said. “Shopify can’t build everything. We consider the marketplace to be very important to their overall strategy. And in a sense, if we can build and deliver solutions faster than they can consume them, we’ll be fine.”

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