Cymax Stores Inc., which sells furniture online, plans to offer its technology to competing e-retailers. It announced today it has raised $25 million in a Series A funding round to finance the development of the service.
The company, which showcases products from 300 North American furniture manufactures, says it will make available to other web merchants its predictive analytics expertise that helps it optimize the delivery of online orders. That will ease the burden of e-retailer clients and help make shopping for furniture online easier for consumers, the company says.
“Purchasing a couch or a table should be as simple as buying a book off Amazon,” Cymax founder and CEO Arash Fasihi said.
Leading the funding round for Cymax, No. 216 in the 2015 Internet Retailer Top 500 Guide, was online dating site Plenty of Fish founder Markus Frind and investment firms BDC Ventures and Salman Partners. Cymax says that money is will be used to develop an e-commerce platform that will incorporate its own predictive analytics to facilitate online sales and fulfillment.
“”Right now only 15 percent of purchases in the $235 billion home furnishing category happen online, Fasihi says. “Inventory management and shipping logistics are major pain points for retailers, and lack of selection, extended delivery times and damaged goods are hindering the market on the consumer side. Our technology will empower retailers to bring more choices to market and ensure furniture arrives at consumers’ homes quickly and in-tact.”
Top500Guide.com data shows Cymax has been growing at an annual rate of 8.4% over the past five years, going from $92 million in sales in 2010 to $127 million in 2014. Cymax says it expects to report $140 million in online sales this year, which would be an increase of about 10% from 2014.Favorite