I’ve received the release below this morning from eSellerPro. They’ve taken in another £1M in funding as the first round of funding of £2M was around two years ago.
I have two questions for you at the bottom of this article, I’d love to hear your feedback on this.
eSellerPro receives a further £1m in funding from Notion Capital
Funding follows a record year with £233m in sales processed
London, 16th February 2012: eSellerPro, the leading eCommerce software provider for multi-channel sellers, today announces a follow-on investment of £1m from Notion Capital. The funding follows Notion’s initial investment of £1.8 million in 2010 and will support the company’s ambitious growth plans over the coming years, which include accelerating momentum in its core business together with entry into new markets and further investment in the product.
In just 2 years since the last round of funding, eSellerPro has become one of the fastest growing SaaS companies in the UK, having tripled both its revenues and its customer base which now includes well-known names such as: Tesco Outlet, Dixons, Royal Mail, BMW, JJB Sports, Maplins, Whirlpool and BT Outlet. eSellerPro’s multichannel ecommerce platform processed £233m in sales on behalf of its customers in 2011 and will soon move through the £1m per day threshold.
Following the appointment of Keith Bird as the CEO early last year, the business has also further strengthened its management team adding a CTO, Director of Sales, Director of Product Management and Director of Global Partnerships & Alliances.
The new funding will go towards expanding the business both technically and geographically, ensuring the company maximises on the opportunities in markets beyond the UK, including the US market, worth more than $300bn.
Keith Bird, CEO at eSellerPro, commented, “Since the first funding round in 2010, eSellerPro has both accelerated our growth and laid the foundations for further expansion into new markets including the all-important US. Our vision is to be a key part of the ecommerce ecosystem, ultimately helping retailers to sell more through seamless integration with multiple online channels. The market is expected to continue to grow rapidly over the coming years and this new funding will help us to accelerate our growth in the UK, US and beyond, while continuing to improve the experience for our existing customers”.
Ben White, Partner at Notion Capital, added: “eSellerPro helps customers respond to the changing retail environment and maximise the value of their online presence through integration with third party channels like eBay and Amazon. The ecommerce market is expected to grow to $1tr by 2016 and online marketplaces is one of its fastest growing segments – as such we are very excited about the company’s future prospects and believe they have what it takes to build a very big business.”
eSellerPro’s technology helps retailers integrate their entire online sales process, simplifying and automating tasks and maximising sales opportunities across multiple channels such as eBay and Amazon. eSellerPro currently has customers across the UK, US and Europe.
What Do You Think?
An observation of what is included in the release is the statement “Funding follows a record year with £233m in sales processed“. Taking a guess at the revenue generated from this at 1.5%, allowing for variations on the fee taken as part of the SaaS application, that figure comes in at around £3,495,000.
Obviously this is likely to be out by miles, with anything up or down of this by a value by 40%. So with the extra investment in mind announced today and ongoing revenue stream, this appears to be a bridging loan, to keep the wheels turning (maybe we’ll see a poke at the US marketplace?) while not being restricted by revenue.
As such I have two questions for you:
- What’s been your experience with eSellerPro over the past few months and do you think that the extra funding will make a difference to the service you receive?
- Do you believe that eSellerPro is going to follow the route of ChannelAdvisor with numerous funding rounds?
Let me know in the comments box below.