E-commerce & Marketplaces Newsletter (June 2024)

M&A, JVs, and Alliances

GrubMarket completes acquisition of US software platform Butter

• US-based online marketplace GrubMarket has completed the acquisition of Butter, a San Francisco-based software company specializing in food wholesale systems
• Butter offers a modular software product suite with AI-powered sales tools, cloud-based enterprise resource planning and integrated online payment solutions
• The strategic move will help GrubMarket bolster its AI-powered e-commerce and payment technologies, enhancing its suite of solutions for the food supply chain industry
• GrubMarket CEO Mike Xu, said "We are thrilled to welcome Butter and its formidable engineering team to the GrubMarket family. We have known about Butter for a little while now and are impressed with their ability to leverage advanced AI to build unique software applications that are highly complementary to our WholesaleWare and GrubAssist AI products. The Butter team shares our passion, and we are excited to collaborate with them to bolster our AI-powered software offerings as we continue to simplify, digitalize and supercharge the food supply chain."

Lightspeed announces partnership with Uber Direct and Uber Eats marketplace

• Lightspeed Commerce, the one-stop commerce platform empowering merchants to provide the best omnichannel experiences, and Uber announced a new North American partnership to directly integrate Uber Direct and Uber Eats marketplace into Lightspeed's platform
• The combination of solutions enables merchants to satisfy their customers' delivery demands, tap into new markets through the Uber Eats marketplace and reduce overhead on direct-to-consumer orders with Lightspeed Order Anywhere and Uber Direct
• "We are incredibly excited to be announcing this strategic partnership with Uber, as we believe it unlocks incredible value for our hospitality customers," said JD Saint-Martin, President of Lightspeed. "The restaurant industry continues to face significant challenges with staffing and increasingly narrow revenue margins. This partnership is an opportunity to provide our customers some relief in the form of a world-class delivery network and cost savings plan. We believe this is only the first step in a long-term relationship with Uber."

Frasers acquires MATCHES IP out of administration

• Frasers Group has acquired the intellectual property of e-commerce fashion brand MATCHES from administrators, less than two months after placing the business into administration
• Frasers acquired MATCHES for ￡52MM in December 2023, but subsequently placed it into administration in March 2024, saying the brand had "consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses"

Sector news

Max Retail raises $15MM to expand excess inventory marketplace

• Max Retail has raised $15MM in a Series A round to expand its marketplace that helps independent retailers and brands sell excess inventory
• The new funding will fuel the company’s efforts to double its number of sellers and expand its support of global sales channels that need drop-ship inventory
• “With this investment, we will continue to grow our sales channel network and expand this excess inventory solution to support the full product lifecycle, giving independent retailers and brands the tools they need to increase their inventory turns and maximize cash recuperation on unsold goods,” said Melodie van der Baan, CEO and Co-founder of Max Retail

Getaround secures up to $50MM in additional financing

• Getaround, the world's first connected carsharing marketplace, announced that its existing debt facility with Mudrick Capital Management has been expanded to provide the company with up to $50MM in additional capital
• On April 29, 2024, Getaround drew down the first $20MM of this capital
• "Earlier this year we proactively transitioned our leadership team and began restructuring our operations to create what we believe is a long-term, sustainable business model in which we can confidently invest for profitable growth," said Eduardo Iniguez, CEO of Getaround. "These initiatives coupled with Mudrick Capital’s additional financial support underscore our commitment to car owners and renters who utilize our carsharing platform to meet society’s evolving mobility needs."

Nivoda raises $30MM in Series B funding

• Nivoda, a London, UK-based diamond and gemstone marketplace, raised $30MM in Series B funding
• The round was led by Avenir Growth Capital and joined by existing investors Headline and Abstract Ventures, along with the addition of Canaan Ventures
• The company intends to use the funds to further enhance its plans for customer growth, market expansion, global outreach, and category expansion

Quantia secures $1.2MM funding for its e-commerce analytics platform

• Quantia, a Polish sales analytics platform, has successfully raised $1.2MM in a funding round aimed at enhancing its marketing capabilities and expanding its reach across Western Europe
• The Company specializes in collecting and analyzing both online and offline sales and engagement data, transforming this information into actionable sales insights for businesses
• The funding round was spearheaded by Inovo VC and Team X, with notable participation from business angels such as Dominique Locher, founder of LeShop.ch, and Ben Lang. Ariel Finkelstein also participated in the round, underscoring the growing confidence in Quantia’s innovative approach to sales analytics
• The newly secured funds are earmarked for accelerating product development and fostering localized growth in key Western European markets, including the UK, Nordics, Spain, and Germany. This strategic expansion aims to solidify Quantia’s presence and adapt its offerings to meet the specific needs of these diverse markets

Swap, an e-Commerce operating system company raises $9MM

• Swap, an e-commerce operating system that manages all operations for direct-to-consumer brands, raised $9MM Series A led by QED Investors, with participation from Cherry Ventures, 9900 Capital, 2100 Ventures, and Ed Hallen
• With this funding round, Swap will launch Swap Global, enabling the company to unlock new markets through DDP shipping, automated tax remittance, and express customs clearance
• The funding will also help Swap grow its marketing and sales teams while the company works to broaden its footprint in the UK, Europe, and the U.S.

Meesho, an Indian social commerce platform raises $275MM

• Meesho, a leading e-commerce startup in India with about 150MM transacting users, has secured $275MM in a new funding round
• The Bengaluru-headquartered startup, which operates a social commerce platform, is being valued at about $3.9BN in the round and has raised more than $1.2BN to date

Pepper raises $30MM in funding for AI and advertising improvements

• Pepper has raised $30MM in a Series B funding round
• The e-commerce platform for food distributors will use the money to invest in generative artificial intelligence, add new advertising capabilities and make other improvements
• The round was led by investment firm Iconiq Growth. Existing investors from Index Ventures, Greylock, Imaginary and Harmony Partners also participated

Alibaba adds $230MM into Lazada’s coffers

• Alibaba has poured another $230MM into its Southeast Asia-focused e-commerce platform Lazada
• With this, the Chinese tech giant has poured a total of roughly $7.7BN into Lazada since 2016
• The new funding comes as e-commerce players in Southeast Asia turn to lower costs to get ahead of their competition

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