Productsup raises $70M to help retailers navigate selling strategies in volatile e-commerce world – TechCrunch

For many people, e-commerce is synonymous with shopping on Amazon, but the reality is that a retailer has the ability to use a variety of different channels to sell and market products, and many do. Today, a startup called Productsup, which has built a platform that helps retailers navigate this landscape, is announcing $70 million in funding – a growth round that underscores both the opportunity to create more of e-commerce business management tools, but also Productsup’s own traction in the market, where it already has more than 900 brands among its customers, including IKEA, Sephora, Beiersdorf, Redbubble and ALDI.

European company Bregal Milestone is leading the round for Berlin-based Productsup, with participation from former backer Nordwind Capital. The company has been around since 2010 and appears to have disclosed less than $24 million raised during that time, according to data from PitchBook, while Crunchbase pegs the total at $20 million.

Vincent Peters, the CEO (the three co-founders are Johannis Hatt, Kai Seefeldt, and Chief Innovation Officer Marcel Hollerbach), told TechCrunch that the valuation was not disclosed with this round, but given how little increase over the past 12 years, this is a strong sign that the company has grown well on its own.

Now the plan is to take funding to accelerate this with more investment in R&D and product development, more global deals, and mergers and acquisitions to bring more features and enter new markets. Peters points out, citing figures from Constellation Research, that its total addressable market for providing e-commerce channel management services is $11.4 billion.

“Previously, we were working on a technology used by only a few people, but since then the P2C category has taken off and we have caused a serious change within the market. As more people become aware of our message, it’s time to energize growth,” Peters said in an email interview. “Our strong numbers support us in this case as they have proven that the pace is picking up, people are talking and customers are embracing our strategy – and we have achieved fantastic results. The first steps were to prove that our technology worked and was adaptable, and now the market is waking up.

“With technological advancements like the Metaverse on the horizon, these are exciting times for the world of commerce,” Hollerbach said in a statement. “We’re about to enter a new era of innovation, so it’s our priority to ensure businesses are equipped to manage the proliferation of shopping channels and experiences to become the disruptors – and not disturbed them.”

The world of e-commerce is definitely complex and fragmented – you don’t need more proof than the very existence of thousands of e-commerce businesses, not just retailers, but sales platforms and tools. to help sell better. But it also means that there are a number of companies providing services in the same category as Productsup.

A Google search of the company name plus the word competitor says it all. Results include other companies with the tagline “We are their #1 competitor” linked to rivals: there are so many rivals they wonder how to get to the top of search results for comparison shoppers for e-commerce. solutions.

Peters tells me that her company’s approach is different, and better, because she’s moved away from the idea of ​​a point solution and has built a platform to manage different aspects of e-commerce marketing and sales at from one place.

“Most of the companies in our space offer piecemeal solutions. We are the only provider that can enable businesses to realize their global potential,” he told me in an email. Productsup, he said, allows them to handle this at scale and cover different use cases such as feed management, vendor and supplier onboarding, product content syndication. “We allow businesses to implement this globally instead of having to worry about individual channels or regions.” These regional and channel silos are indeed one of the biggest problems with digital commerce in general, and one of the reasons marketplaces like Amazon are gaining so much traction, as they are one-stop-shops in and of themselves.

All of this is certainly in line with how many SaaS platform players are positioning their solutions today (moving away from point solutions is a big theme, for example, in cybersecurity and workplace productivity), but it is also a crowded space. Companies like Shopware, another German player that also raised a big round earlier this year, and even Salesforce are playing aggressively in this space.

While the Covid-19 pandemic has undoubtedly given the e-commerce world a major boost, what’s left as a result of this (hopefully!) is fading – and in any case making gradual returns away from social distancing and the rest – is “commercial anarchy” in Peters’ words. In other words, even more choice for consumers and more complexity for those trying to sell to them.

“First, businesses are caught in a state of flux, dealing with the business anarchy that the pandemic has accelerated,” he said. “These days, brands, retailers and online platforms don’t know if consumers are on TikTok, Facebook, Instagram or a combination of the three. Also, post-pandemic, in-store shopping has returned, bringing local inventory ads back to the forefront for businesses trying to reach shoppers. The number of channels organizations need to meet their customers is growing both in complexity and volume. In order to succeed in this ever-changing landscape, retailers need a solution that can manage these channels seamlessly. And that will include any new platforms to come, as there inevitably are.

Add to that, he said, other issues that go beyond the simple process of being able to find and buy something online. “Consumers are increasingly concerned about issues such as sustainability, ethical processes and are changing their shopping habits to reflect this,” he said. “Brands that can’t respond to this will suffer.”

The company claims that ARR has increased by more than 60% in the last twelve months, a gross revenue retention rate of 90% and a net revenue retention rate of 120% – although it does not disclose real numbers.

“Our decision to partner with Productsup was based on its long-term, sustainable trajectory as a mission-critical enterprise-grade commerce solution,” Cyrus Shey, managing partner of Bregal Milestone, said in a statement. “While alternative vendors primarily offer point solutions, Productsup uniquely addresses the needs of the evolving commerce market for a single view of all product information value streams and provides seamless, end-to-end control. at the end of product data – across all global channels and in real time.”

Leave a Reply

Your email address will not be published.