Italy's Commerce Layer Secures $16M Funding - Headless Commerce Platform

The Rise of Headless Commerce and Commerce Layer's Funding

Headless commerce, defined as a suite of tools enabling companies to utilize customized front ends for building applications focused on the sale of goods and services, has experienced substantial growth. This expansion isn't solely attributable to the increased demand for online shopping; it also reflects a greater strategic focus among businesses regarding their brand presentation.

Commerce Layer Secures $16 Million in Series B Funding

Commerce Layer, a provider of APIs designed for constructing bespoke e-commerce applications, has recently announced a $16 million funding round. These funds will be allocated to business expansion and the enrichment of its API library with additional commerce tools.

Capabilities of the Commerce Layer API

Currently, Commerce Layer facilitates the creation of applications for various platforms, including mobile, wearables, and voice assistants. It also supports point-of-sale systems, subscription models, and multi-vendor marketplaces.

Furthermore, the platform enables the development of custom shopping carts and the transformation of traditional print catalogs into interactive, digital shopping experiences.

Future Development Roadmap

According to Filippo Conforti, CEO and co-founder, the company is planning significant feature additions. These include a new developer dashboard, a command-line interface (CLI), and a comprehensive order management system.

A hosted checkout application, a metrics API, a reporting application, and enhanced support for subscription and marketplace models are also on the development roadmap.

Investment Details and Board Changes

This Series B funding round is spearheaded by Coatue Management, with Caryn Marooney, a general partner and veteran communications executive (formerly with Facebook), joining Commerce Layer’s board of directors.

Existing investors, Benchmark and Mango Capital, also participated in this round. Benchmark previously led Commerce Layer’s Series A funding approximately one year ago.

A Pivotal Moment for the Startup

The Series A round occurred during a critical period for the startup. Situated near Florence, Italy, and coinciding with the initial surge of COVID-19 cases in Europe, it signaled investor confidence even amidst global uncertainty.

The E-commerce Boom of 2020

The year 2020 witnessed a significant surge in e-commerce activity, as consumers increasingly turned to digital channels due to restrictions on in-store shopping.

Commerce Layer's Growth Trajectory

This shift positively impacted Commerce Layer’s performance. The company reported a 6x revenue increase over the past year, growing from a base of six customers in May 2020 to approximately 26 current businesses utilizing its tools.

Notable clients include Chilly’s, Brioni, SumUp, Paradox Interactive, and Coca-Cola Embonor.

The Growing Importance of Headless Platforms

Headless platforms are becoming increasingly vital in the realm of e-commerce. This trend indicates a maturation of the sector, with retailers seeking more tailored solutions beyond standardized, “plug-and-play” approaches.

It also reflects the expanding diversity of sales channels and the necessity for tools that can accommodate these changes.

Competitive Landscape

While Commercetools is a prominent “headless” commerce provider and is credited with coining the term, numerous other companies are developing tools for unique e-commerce experiences.

These include Spryker, Swell, Fabric, Chord, and Shogun, with even Shopify entering the market with Shopify Plus.

Coatue Management's Perspective

“eCommerce has become core to our everyday lives. As a result, big brands and enterprises need better ways to shift from retail and build exceptional online storefronts. We believe that Commerce Layer is building the API platform for this new category, and we’re incredibly proud to join them in pursuing their ambitious and exciting vision,” stated Marooney.