e-Commerce Startup Commercetools Raises USD 145 Million from Insight Partners

By: Retail CIO Outlook | Friday, January 10, 2020

Arthur Lawida, President

FREMONT, CA: Global e-commerce startup Commercetools raised USD 145 million in a growth round of funding led by Insight Partners. With this round of funding, the German startup's valuation stands at USD 300 million. The funding came in at the same time when it was spun out by German retail and tourist service giants REWE. REWE had earlier acquired Commercetools in 2015 for an undisclosed figure.

Founded in 2006, Commercetools launched its API commerce platform in 2013 and has been looking to disrupt the commerce software market since. By making use of the company's true cloud, headless, and API first commerce platform, brands can break away from restrictive legacy e-commerce software. The company helps brands create more engaging and higher revenue-driven commerce experiences, which are more comfortable and quicker to build, grow, and manage across any channel.

"Rather than relying on increasingly outmoded software, brands, manufacturers, and distributors are choosing our cloud-native and modern software platform to transform their digital commerce for today's consumers," said Dirk Hoerig, CEO, and co-founder, Commercetools. "To answer this demand, we have built a strong and successful international business, and this new investment will enable us to intensify the pace of our growth into the North American and Asia-Pacific markets, as well as leverage our success in Europe. The scale of this funding, combined with our tremendous strengths in technology and the quality of the team we are building, significantly furthers our ambition to become the number one commerce platform globally."

Commercetools has seen significant growth over the last 18 months. The company has expanded its operations in the U.K. and Asia-Pacific and has also built up a large roster of high profile clients like Audi, Bang & Olufsen, Carhartt, and Yamaha. As part of the new deal, Richard Wells and Matt Gatto, seasoned software investors and Insight Partners Managing Directors, will join the Commercetools' Board of Directors.

"With a strong track record of investing in retail software leaders, we are excited to have the opportunity to invest in commercetools and help them scale up internationally. In our opinion, Commercetools represents the next wave of enterprise commerce software and has the potential to unlock powerful innovation and growth within the e-commerce sector,” said Wells.

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