E-commerce has become the default business strategy for most retailers these days. Along with the boom of online retailers, technology builder platforms are in high demand.
Commercetools, an e-commerce builder focused on providing APIs for e-commerce businesses, has received $140 million in funding in a Series C round led by Accel. The company valuation has surged significantly to $1.9 billion.
Commercetools prioritizes working with large retail brands with more than $100 million in gross merchandise value such as Audi, AT&T, Danone, Tiffany & Co., John Lewis, and more. They now provide over 300 APIs with 9 packages of service tailored for large-scale needs. Apart from larger brands, Commercetools also sees the opportunity from smaller companies and wants to support them to grow bigger.
CEO Dirk Hoerig is often credited as the first person to be coined to the term “headless commerce” – APIs are used by companies, strategists, developers and designers, to build a personalized customized e-commerce experience.
The funding will be used to invest in organic expansion and also new technologies, as well as acquisitions. However, the consolidation between companies might be rarer in this sector since the market still holds a lot of potentials. Some startups might choose to merge with larger firms but most would prefer to scale on their own.