Headless Checkout Platform Rally Raises $6M in Funding

The Rise of Headless Checkout in E-commerce

A trend similar to “headless” content management systems is emerging within the e-commerce landscape. This allows businesses to operate a CMS without being restricted to a specific front-end platform.

Rally Commerce Secures Seed Funding

Rally Commerce Inc., a “headless checkout” startup, has recently obtained $6 million in seed funding. This investment signifies a growing movement to decentralize e-commerce ecosystems.

The core concept involves enabling merchants to operate independently from platforms like Shopify. Rally introduces an innovative element by integrating headless commerce with a Web3 token system.

This approach, according to Rally, will grant merchants ownership within the network itself.

Investment Details

Rainfall Ventures spearheaded the funding round, with participation from Felix Capital, Long Journey Ventures, Afore Ventures, and Commerce Ventures.

The Team's Background

The team responsible for Rally previously developed CartHook, a dedicated checkout solution.

How Rally Works

Rally’s checkout system is designed to be platform-agnostic. Merchants can either replace their current checkout processes with Rally’s or construct a completely headless experience.

In this scenario, Rally functions as both the checkout and orchestration layer.

Statements from Leadership

Jordan Gal, co-founder and CEO of Rally, stated: “Merchants are frequently compelled to accept subpar checkouts offered by underlying platforms.”

He further explained that app developers often find themselves subordinate to the platforms they create for. Rally aims to provide improved conversion rates, higher average order values (AOV), and greater business autonomy.

E-commerce Growth and Market Trends

The e-commerce sector has experienced substantial growth following the pandemic, as populations shifted to online shopping. This surge benefits all businesses operating within the e-commerce space.

Industry Perspective

Joseph Pizzolato, an investor at Felix Capital, commented: “The headless commerce sector is thriving as merchants and investors acknowledge the potential for creating seamless and unique customer experiences across all interaction points.”

He highlighted companies like CommerceTools, Nacelle, Fabric, and Bolt as pioneers revolutionizing the traditional e-commerce infrastructure.

These companies are attracting significant funding and achieving high valuations.

Comparable Funding Rounds

For comparison, Commercetools – a provider of e-commerce APIs for building customized services – recently secured $140 million in funding.

Other Players in the Headless Commerce Space

However, Commercetools and Rally are not the only companies operating in this area. Other notable players include Spryker, Swell, Fabric, Chord, and Shogun.