Vancouver-based enterprise commerce company Elastic Path has secured $43 million in a Series B financing, increasing its total funding to more than $63 million. The round was led by U.S. growth equity firm Sageview Capital and joined by existing Canadian investors Yaletown Partners and BDC Capital‘s IT Venture Fund. Founded in 2000, Elastic Path provides API-oriented commerce solutions for enterprises. It has so far helped brands generate more than $60 billion in over 170 countries. CEO Harry Chemko said the funds raised will be used for R&D addressing the B2B market and other innovations. Elastic Path is also hiring sales personnel and opening a Toronto office to recruit developers.
Enterprise Commerce Leader Elastic Path Closes $43M Series B Funding Led by Sageview Capital
Funding follows record-breaking growth, new F100 customer wins and top-tier partnerships
Vancouver, Canada (June 19, 2018) – Elastic Path, the leader in enterprise headless commerce solutions, announced today it has closed a $43 million Series B growth investment, led by Sageview Capital and with participation from current investors, Yaletown Partners and BDC Venture Capital. With this new minority infusion, the company has now raised a total of over $63 million.
“Sageview provides highly complementary strategic and industry knowledge to our investor base. We look forward to leveraging the firm’s domain expertise, resources and shared vision to support Elastic Path’s goals for product evolution and market expansion,” said Harry Chemko, CEO of Elastic Path.”
Increased company momentum, including recent European customer wins such as telecommunications company Swisscom, and French electronics giant Boulanger, is spurring the investment. Elastic Path has experienced a 120% increase in subscription revenues and a doubling of their partner ecosystem, adding systems integrators IBM iX, TCS, Cognizant and Sirius to existing top-tier partners Accenture, PwC and Deloitte Digital. For the third year in a row, Elastic Path has ranked highest in “ability to execute” and “completeness of vision,” in the Visionaries quadrant of Gartner’s 2018 Magic Quadrant for Digital Commerce.
Disruption from API-Commerce on the Rise
“We are pleased to lead this important capital raise for Elastic Path, a company that is pioneering API-oriented commerce,” said Ned Gilhuly, Co-Founder and Managing Partner, Sageview Capital. “The inherent flexibility of Elastic Path Commerce allows companies to re-imagine their relationships with customers in the digital age. We are convinced that Elastic Path has the technology for the future in a rapidly evolving market and we look forward to providing the company with both the financial and operational resources it needs to continue disrupting the marketplace. We are also proud to mark our third major investment in a technology business headquartered in Canada – a nation well known for fostering technology and ecommerce development.”
Elastic Path’s success is due in part to incumbent vendors like Oracle, IBM and SAP struggling under the weight of their now decades-old technology. Systems integrators are turning to nimbler API-based technologies to build commerce systems for new generations, especially with the emerging power of Gen Z and the Internet of Things finally coming of age.
Two Mega Trends: Gen Z and the IoT
Gen Z is the first generation of digital natives who learned to swipe before they learned to walk. They are projected to soon become 40% of the consumer segment in 2020. 70% of them prefer to do as much online shopping as possible. The IoT is coming of age with a predicted $15 trillion investment in B2B and B2C that will mean companies must coordinate dozens if not hundreds more ways customers can purchase—opening a tremendous opportunity for the right commerce solution like Elastic Path.
“The decision to purchase a digital commerce system is one of the most difficult a company can make, since the future of the entire business hangs on its success,” added Chemko. “We want to minimize the risk for large corporations contemplating their inevitable digital transformation. We’ll be using this funding to significantly ramp-up research and development efforts to address the B2B market and continue innovating on our industry-leading architecture.”
Elastic Path will be opening a new office in Toronto to attract developers and are aggressively hiring new sales and marketing personnel.
About Sageview Capital
Sageview Capital LP is a private investment firm providing growth capital to small and mid-sized companies in the technology, business services, and financial services sectors. The firm’s investments include 360insights, Avalara, CallRail, Crimson Hexagon, Demandbase, DMT, MetricStream, NAM, Reflexis, United Capital and Womply among others. Sageview was founded in 2006 and is led by Ned Gilhuly and Scott Stuart, former partners of Kohlberg Kravis Roberts & Co. (KKR) and Dean Nelson, former head of KKR Capstone. The firm has offices in Greenwich, Connecticut and Palo Alto, California. For more information, visit www.sageviewcapital.com.
About Elastic Path
Defining the future of commerce, Elastic Path pioneered the world’s leading API-oriented commerce solution for enterprises. The company’s flagship product, Elastic Path® Commerce, has helped the world’s top brands generate over $60 billion in over 170 countries. Customers from industries as diverse as travel, telecoms, publishing, software, and retail enjoy the benefits of a flexible, open architecture that monetizes brand-defining customer experiences, facilitates business agility and eliminates commerce system silos. Elastic Path is a private company based in Vancouver, Canada with offices in the UK and US. For more information www.elasticpath.com