ChannelEngine have announced the closure of a $50m Series B funding round to further develop their data-driven enablement, orchestration and automation layer, becoming the world’s largest ecommerce network and operating platform. That sounds impressive but what does it mean for you as a brand or retailer?
Today I spoke to ChannelEngine CEO Jorrit Steinz who spoke about the need the power brands and retailers business on channels around the world. That’s why they since their Series A investment a year ago, they have opened up offices in Munich, Dubai, Singapore, Melbourne, and New York. They also more than doubled its revenue through serving over 450 clients and tripled employees to more than 140.
The strategy for ChannelEngine is to enable brands and retailers to sell in any territory around the world on any channel, whether that be a marketplace or a social channel. eBay and Amazon may be your go to channels in the UK and much of Europe, but stick with these two marketplace and you won’t be competitive in other territories. Plus even in the UK and Europe if you’re not embracing new channels such as Instagram and TikTok then you’re missing out on business that you should be owning.
An important point to note is that when you move from selling on the biggest marketplace to adopting new channels you’ll face a lot less competition and that’s good for everything from owning the category to lower advertising costs as well as exposing your brand to consumers who may otherwise never see your products.
“It’s opening up scope to the world” Jorrit told me, speaking of a Spanish furniture retailer who selected the ChannelEngine platform for their EU sales before becoming aware of their expansion plans. Having connected their sales operations with ChannelEngine, they’re now set to sell globally.
ChannelEngine doesn’t just handle your ads on channels in different territories, they are also partnering with logistics services in different regions to ensure products can be delivered. Take Australia for example, there are close to a dozen channels in that one country that a brand or retailer serious about selling in the region should be embracing. And that’s just one of the countries ChannelEngine is working in.
The $50m Series B funding round will be used to fund development of the platform and ultimately reduce complexity for brands and retailers as they trade globally.
We’re in the midst of a profound shift in ecommerce as brands are increasingly selling directly to consumers via open online marketplaces such as Amazon, Walmart and Zalando. Already 60% of ecommerce happens this way and the growth rate is phenomena. Our centralised ecommerce integration platform eliminates complexity for brands and retailers, helping them connect with consumers, wherever they are.
– Jorrit Steinz, CEO, ChannelEngine
For sellers, having a centralised platform to manage all these channels presents a huge opportunity. ChannelEngine enables the sales of more than 6 million products from 8,100 brands on 200+ sales channels. Clients include Bugaboo, Staples, JBL, Polaroid, Hunkemöller, Brabantia, Reckitt Benckiser, Bosch, JDE, Electrolux, Philips Domestic Appliances, Signify, Diadora, Glanbia, Oneill, and Safavieh.
If you’d like to find out more about ChannelEngine and how they can help you scale your business, check out their website for more information.
The funding round
The $50m Series B funding round was led by Atomico, with participation from General Catalyst, and existing backers Inkef and Airbridge Equity Partners.
The COVID-19 pandemic dramatically accelerated the adoption of e-commerce, which now accounts for 20% of all global retail sales. The global e-commerce market is expected to grow by over $500 billion between 2022 and 2023 alone. By building the largest ecommerce operating platform, ChannelEngine is set to capitalise on this opportunity by giving brands and retailers instant access to the global marketplace.
– Luca Eisenstecken, Principal, Atomico
As the use of e-commerce continues to accelerate, retailers and brands have to meet consumers where and how they shop. ChannelEngine has built out a complete, tech-first platform that’s both robust and global. General Catalyst is excited to invest in ChannelEngine as they help leading e-commerce companies sell on marketplaces worldwide
– Larry Bohn, managing director, General Catalyst
