Ecwid, a Shopify-style ecommerce platform, has raised a $42 million spherical after seeing “dramatic growth” through the COVID-19 disaster.
San Diego, California-based Ecwid is a software-as-a-service platform that lets anybody arrange their very own on-line retailer and consists of instruments for creating web sites, managing orders and stock, and accepting funds. It additionally presents a white label version, permitting third-party companies, web site builders, hosts, and point-of-sale platforms to bundle ecommerce shops into their respective providers with out having to construct the know-how themselves.
Ecwid stated the extra $42 million will “fuel aggressive growth,” together with a hiring spree it expects will double its headcount. The firm added that it plans to purchase out a few of its earlier-stage buyers, together with Runa Capital and ITech Capital. Ecwid’s newest funding was led by Morgan Stanley Expansion Capital and PeakSpan Capital.
Ecwid had raised a modest $6.5 million within the 11 years since its founding, and this newest spherical factors to a surge in curiosity because of the pandemic. Social distancing measures have led to a sizeable uptick in on-line purchases, so companies that beforehand relied on brick-and-mortar gross sales have needed to adapt. Ecwid stated its buyer sign-ups have tripled, whereas transaction quantity amongst its tons of of 1000’s of present clients grew by greater than 50% between March and April.
Above: Ecwid order notification
The announcement comes just some days after Facebook launched a brand new service known as Facebook Shops, making it simpler for companies to arrange on-line shops on Facebook and Instagram. Ecwid additionally offers tools that allow sellers transact enterprise by means of social networks, together with Facebook and Instagram. But founder and CEO Ruslan Fazlyev is adamant that his platform is sufficiently differentiated from Facebook’s.
“One of the many advantages of using Ecwid is that you can set up your shop and sell on the web, on Facebook, Google Shopping, Amazon, and many other channels,” Fazlyev informed VentureBeat. “Customers can also create a branded app and list their business in the App Store and Google Play store. For example, a pizza shop can have their loyal customers order directly through a branded mobile app, or a furniture company that wants to [can] create an in-app catalog experience for iPad — we do it all.”
Ecwid’s apparent competitor is, after all, Shopify. But Fazlyev believes his firm’s product is distinct sufficient to attraction to the thousands and thousands extra companies now trying to incorporate ecommerce. Among its promoting factors, Ecwid presents a primary free service and the white label model.
The previous few weeks have seen a marked enhance in investments throughout the ecommerce sphere, with Square launching a brand new PayPal-like on-line checkout system and New York-based Slice locking down $43 million in contemporary funding to assist native pizzerias promote on-line.
A number of brick-and-mortar retailers — together with JC Penney — are going through chapter, whereas Walmart reported record ecommerce sales this week. Data suggests that on-line retail gross sales have grown by 50% within the U.S. alone through the pandemic, and Ecwid is now well-positioned to profit from these developments.
“The new wave of funding gives us the resources and flexibility to accelerate the evolution of an ecommerce platform and to further expand internationally,” Fazylev stated. “We are playing an important role in enabling small businesses to survive, thrive, and grow in this new COVID-19 world.”