Mirakl Raises $555M at $3.5B Valuation

Mirakl Secures $555 Million in Series E Funding

The French company Mirakl has successfully completed a new Series E funding round, raising $555 million. This investment has propelled the company’s valuation to $3.5 billion.

Mirakl provides a platform enabling businesses to launch a marketplace, either for direct consumers or for business-to-business (B2B) clients. Its service operates on a software-as-a-service model, meaning Mirakl handles the marketplace operations on behalf of its clients.

Investment Details and Valuation Growth

Silver Lake spearheaded the investment, with participation from current investors including 83North, Elaia Partners, Felix Capital, and Permira. This latest funding signifies substantial growth for Mirakl.

Previously, the company secured $300 million in funding at a $1.5 billion valuation just last year, demonstrating a significant valuation increase.

Notable Clients

Mirakl’s client base includes prominent organizations such as ABB, Accor, Airbus Helicopters, Carrefour, Express, Leroy Merlin, The Kroger Co, and Toyota Material Handling.

The Rise of Online Marketplaces

Many consumers are already familiar with the concept of marketplaces integrated within online stores. When a retailer doesn't stock a specific item, they may suggest products from third-party vendors.

Purchases from these vendors are then completed directly through the retailer’s website. Mirakl facilitates the addition of this marketplace functionality to existing e-commerce platforms.

Shifting Transaction Dynamics

In some instances, transactions occurring through marketplaces now surpass those of in-house sales. This represents a profitable trend for e-commerce businesses.

By not owning the inventory of third-party sellers, companies can free up capital to expand their reach and boost online sales.

Expanding into B2B Marketplaces

This trend extends beyond consumer-facing retail. B2B marketplaces are also gaining traction.

For example, automotive manufacturers, reliant on numerous suppliers, could utilize a marketplace where suppliers directly list parts, simplifying the process for repair shops to locate necessary components.

From One-to-Many to Many-to-Many

Integrating a marketplace shifts the business model from a one-to-many relationship to a many-to-many dynamic.

This necessitates careful selection of third-party partners to maximize marketplace effectiveness. Conversely, sellers benefit from listing their products on as many marketplaces as possible.

Introducing Mirakl Connect

To address this need, Mirakl developed Mirakl Connect.

The company aims to be a central hub within the marketplace ecosystem, connecting online stores with potential sellers. Mirakl Connect allows customers to discover third-party vendors, while simultaneously simplifying product listing for sellers on compatible marketplaces.

Future Plans and Expansion

The recent funding will be used to significantly expand Mirakl’s engineering team. The company intends to add 350 engineers, bringing the total to 500.

Furthermore, the customer success team will be doubled in size. These investments reflect the company’s positive trajectory and future growth plans.