BigCommerce raises US$30 million Series E round
Australian-founded, Texas-based ecommerce company BigCommerce has raised US$30 million (around $41 million) in a Series E round led GGV Capital, with participation from all existing investors, including General Catalyst, SoftBank Capital, Telstra Ventures, and American Express Ventures.
The fresh funding, which brings the total raised by the company since its founding in 2009 to US$155 million, comes after a busy year. Following its acquisition of Zing to further develop its omni-channel solutions last April, the company appointed former Homeaway COO Brent Bellm as CEO in June. Bellm had also held senior roles at eBay and PayPal and joined BigCommerce to oversee its next stage of growth, leading to talk of an IPO.
However, it seems an IPO is a while away, with Bellm instead telling Recode that the company is focused on hitting monthly sales next year that would equate to $100 million in revenue on an annualised basis, with the expectation that BigCommerce will also next year become profitable on an Ebitda basis. To do this, the company is moving beyond SMBs to target mid-market businesses.
Bellm said, “BigCommerce is benefitting from the retail industry shifting online, with every small, mid-sized and large merchant in the world seeking to gain a piece of the $1 trillion ecommerce market.”
The company, which reports that it has process more than US$9 billion in sales through its platform, has over the last 12 months shipped 130 new features to customers, integrating its point of sale, multichannel, and payment technology with partners including Square, eBay, Facebook, and Pinterest, while brands including Camelbak and Toyota have also joined the platform.
Earlier this year BigCommerce also announced a strategic partnership with eBay that gives sellers an efficient way to list products and manage inventory on eBay, in turn helping them sell up to 50 percent more by giving them access to the largest online marketplace in Australia.
Managing partner at GGV Capital Jeff Richards, who will be joining the company’s board of directors, said the firm invested because of the opportunities in the industry, which is still “in the early innings of a massive global shift from offline to online retail”, with mobile and younger demographics driving the growth.
“BigCommerce and its competitors have brought hundreds of thousands of merchants online in the past few years, but there are millions left to come online, and today’s shopper shops online first,” Richards said.
With GGV Capital based in Silicon Valley and China, the involvement of the firm will also help BigCommerce expand further around Asia, where the opportunity is huge: Morgan Stanley reports that the company’s addressable market is worth over US$10 billion annually, with 10 million merchants in Western markets, and 46 million globally.
Image: Brent Bellm. Source: Supplied.