VTEX—a provider of ecommerce software integrated with software for operating an online marketplace and an order management system—announced today $225 million in funding from technology investors. The funding values VTEX at $1.7 billion, VTEX said.
VTEX’s executives said the funding will help the technology firm bring its ecommerce platform to more companies as they address the ongoing challenges of maintaining and expanding their markets.
“The pandemic is challenging brands in unprecedented ways, and this funding will help us bring our collaborative commerce platform to more brands so they can achieve rapid time-to-revenue despite the challenges they face now and in the future,” Amit Shah, chief strategy officer and U.S. general manager at VTEX. “It’s exciting to see both B2B and B2C sellers across the globe finding success with collaborative commerce in ways they didn’t think possible.”
Jordan Jewell, research manager for digital commerce at research and advisory firm IDC, says VTEX’s mix of internet-hosted software-as-a-service technology for operating ecommerce sites, online marketplaces and order management system will position it well for continued growth in the market among companies who want to grow their online business. “Their platform enables merchants and their customers to operate with agility and test new business models,” he says.
Shah, a former executive with the Magento and SAP Hybris ecommerce platforms, says the VTEX technology is designed to let companies deploy and run all components of its digital platform—ecommerce, marketplace, and order management—or to deploy them one at a time as they develop different parts of their business. For example, after a company initially developed its ecommerce channel, it may then decide also turn on the marketplace function, and then the order management system to better route online orders among multiple sellers to the most appropriate distribution and fulfillment center—or in some cases to a distributor’s physical branch or a to a networked retail store, he said in an interview with Digital Commerce 360 B2B.
He adds that turning on the marketplace and order management system after having deployed VTEX’s ecommerce technology would not require additional fees or technology integration. Shah, who is based in Boulder, Colorado, says that VTEX mostly works with client companies doing $50 million or more in online sales or $1 billion on total sales.
Looking for talent and acquisitions
VTEX, founded in 2000 in Brazil but headquartered now in London, will use the funding to “make acquisitions, hire additional talent, innovate its platform and accelerate growth in U.S., European and Asia-Pacific markets,” it said today in a statement. It noted that it does business in more than 40 countries.
Since the pandemic hit earlier this year, VTEX says it has nearly doubled the number of companies using its “collaborative commerce” platform to more than 3,000 online storefronts for such global brands as AB InBev, Coca-Cola, Motorola, Stanley Black & Decker, Sony, Walmart, Whirlpool and Nestlé.
The Series D funding round brings the company’s total funding to $365 million in the last 10 months, VTEX said. It received its latest funding from investment firms Tiger Global, Lone Pine Capital, Constellation, Endeavor Catalyst and SoftBank.
“This injection of funding will undoubtedly support us in achieving our mission to accelerate digital commerce transformation around the world,” said Mariano Gomide de Faria, VTEX co-founder and co-CEO.
VTEX said it expects to close 2020 with a 114% increase in sales over 2019 and a company record $8 billion in gross merchandise volume transacted on its commerce platform.
Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week, covering technology and business trends in the growing B2B ecommerce industry. Contact editor Paul Demery at [email protected] and follow him on Twitter @pdemery.
Follow us on LinkedIn and be the first to know when new Digital Commerce 360 B2B News content is published.