E-commerce platform BigCommerce has been slowly eating into the customer base of bigger competitors like Shopify and Demandware. With a recent round of big investment for Big Commerce, will the Texas-based firm be able to catch up on its rivals?
BigCommerce, which counts Sony and Toyota as among its high-profile clients, recently announced raising $64 million in fresh funding to grow its business. The investment was made possible by Goldman Sachs, General Catalyst, Tenaya Capital, and GGV Capital. To date, BigCommerce has raised more than $200 million since its founding in 2009.
BigCommerce says it has been able to assist small merchants in cutting down costs by up to 80 percent. Its template allows users to launch online stores with shipping and payments tracking. Online merchants using BigCommerce may also cross-sell easily on other online platforms like Facebook, eBay and Amazon.
Rationale of investment for BigCommerce
Investors say that the success of the company as well as its growth potential made them help BigCommerce. One investor, GGV Capital managing partner Jeff Richards that e-commerce is a big business which is doing very well.
BigCommerce has been faring well in Australia and the United States . The investment for BigCommerce means the firm will be able to expand further abroad, particularly in Europe.
It also created an integration with popular social networking app Instagram so that consumers can easily buy directly via Instagram. It has also partnered with PayPal and Google.
Will investment for BigCommerce help topple rivals?
The big question now is whether the big investment for BigCommerce give it the push to topple Shopify and another rival, Demandware.
BigCommerce CEO Brent Bellm is non-committal. Instead, he says that the sweet spot for the firm is somewhere between small businesses, which Shopify caters to, and large enterprises, which is the market of Demandware. He adds that the company is nearing $100 million in yearly revenues.