E-commerce technology company Elastic Path raises $7.5 million
October 30, 2015 10:04 AM
Elastic Path Software Inc., a Vancouver, British Columbia-based provider of e-commerce technology, has raised C$10 million (US$7.5 million) in equity financing, the company said today. That brings total equity financing to C$23 million ($17.5 million).
Elastic Path sells technology that helps retailers and brand manufacturers manage pricing and product content across online venues, including retail e-commerce sites, online marketplaces and mobile apps. Clients include LVMH, No. 56 in the Internet Retailer 2015 Europe 500; media companies Time Inc. and Virgin Media; Brazil-based online retailer NetShoes, No. 7 in the 2015 Latin America 500; and brand manufacturers like Garmin Ltd.
Yaletown Venture Partners and the BDC Venture Capital IT Fund led the latest round of equity investment.
Elastic Path will use the money to invest in its application programming interface, which lets retailers analyze shopper behavior on their websites, manage loyalty and rewards programs, and recognize an in-store shopper whose mobile app connects with a beacon, chief technology officer Sal Visca says. Beacons are small pieces of hardware that retailers can place anywhere in retail stores to pinpoint the location of a consumer’s smartphone and send those shoppers personalized messages.
“Our customers are telling us that omnichannel service is no longer an option for doing business. It’s a requirement,”, Elastic Path CEO Harry Chemko says.
“This is forcing companies to rethink their current marketing and customer service strategies,” he says. “Buyers want the ability to shop from one channel to the next and assume the brand will recognize their preferences and actions. It’s no longer about offline or online, in-store or e-commerce—it’s simply the new expectation of business, and commerce.”
Elastic Path cites as evidence of its growing business an eMarketer study showing that e-commerce sales will hit 9% of total retail sales this holiday season, or $79.4 billion, up from 8.3% last year. EMarketer predicts that by the end of 2016, 25% of all retail e-commerce sales in the United States will take place on mobile devices.