Prettydamnquick Secures $25M Funding to Revolutionize Online Checkout

A New Contender Emerges in E-commerce Fulfillment

A startup aiming to present a viable alternative to Amazon has secured funding to further capitalize on an existing market opportunity. PrettyDamnQuick (PDQ) offers technology solutions for retailers, enabling them to customize and rigorously test various shipping and checkout processes. The company has now received a $25 million Series A investment to broaden its operational scope.

Rapid Growth and Market Position

Since its inception in 2020, New York-based PDQ has amassed approximately 200 customers. Currently, the platform processes around 30 million orders monthly. This translates to a gross merchandise volume of $4 billion to date, with projections indicating 300 million orders processed by the close of 2025.

E-commerce Industry Dynamics

PDQ’s fundraising and expansion coincide with a period of significant observation within the broader e-commerce landscape. Following a surge in growth during the COVID-19 pandemic, many companies and investors witnessed a decline in demand as consumers returned to traditional brick-and-mortar stores.

Contributing factors included inflation and general economic uncertainty, which led to reduced consumer spending. Recent holiday shopping data presented a mixed picture, with strong sales days interspersed within a period of lower-than-anticipated overall growth.

Opportunities for Enhanced Customer Experience

However, companies like PDQ may still thrive by offering shoppers attractive discounts without substantially impacting retailer profit margins. This approach could be particularly well-received in the current economic climate.

Addressing a Core Challenge for Online Retailers

PDQ tackles a common issue faced by independent e-commerce businesses. Many online retailers are fundamentally retail-focused, rather than possessing deep technological expertise.

The Appeal of Outsourcing Technology

Those seeking to outsource their technology infrastructure may gravitate towards solutions like Amazon, leveraging its marketplace, search algorithms, fulfillment services, shipping capabilities, and loyalty programs for a fee. Alternative third-party platforms, such as Temu, Instagram, and TikTok, are also gaining traction.

Empowering Independent Online Stores

PDQ specifically targets e-commerce companies that prefer to establish and maintain their own distinct online presence. This aligns with the independent spirit driving the growth of platforms like Shopify, which simplifies online storefront creation, and Stripe, which manages customer transactions.

PDQ concentrates on a crucial aspect of this process: optimizing the checkout experience, including shipping costs, delivery options, and promotional offers designed to encourage increased purchases.

The Genesis of PDQ

Avi Moskowitz, PDQ’s CEO and founder, credits his entrepreneurial background for inspiring the startup’s creation. His prior experience running a craft brewing business in Israel proved pivotal.

BeerBazaar, launched in 2015, necessitated the development of a website in early 2020, utilizing Shopify as its foundation. The sudden onset of the COVID-19 pandemic dramatically increased order volume.

“Suddenly we were shipping hundreds of orders a day, some days over 1,000 orders,” Moskowitz explained. This rapid growth exposed a significant deficiency – a lack of the seamless, Amazon-like experience customers had come to expect.

Developing a Platform for Optimization

Moskowitz and his team sought to rectify this issue for BeerBazaar, aiming to instill the same level of trust and confidence in their online store as Amazon provides. This included transparent shipping information, cost reduction strategies, and even free shipping options.

“As we began to solve it for ourselves, we realized that like many of the tools that started emerging in e-commerce, like personalization and optimization and A/B testing, it really does require a platform,” he stated. “This is not about a particular feature. If you’re going to be able to optimize in checkout, it means being able to manage the entire customer journey, from the moment they enter your store, all the way through checkout, fulfilment, tracking and delivery.”

The resulting platform formed the basis of PDQ, which initially integrated solely with Shopify stores. The company intends to utilize the new funding to expand compatibility to other e-commerce platforms.

Personalization as a Key Differentiator

PDQ’s primary focus is personalization, ensuring each shopper encounters a checkout experience tailored to their individual needs. The platform orchestrates existing order management, shipping, and payment systems.

For retailers lacking in-house fulfillment capabilities, PDQ offers an interface to connect with a wide array of carriers, including USPS, DHL, FedEx, and UPS, as well as smaller delivery companies and third-party logistics (3PL) providers.

Comprehensive Tooling for E-commerce Success

PDQ also provides tools for checkout optimization, order tracking, post-purchase protection, and A/B testing of various offers.

While other companies, including Shopify and its integration partners, address similar aspects of the e-commerce flow, the market is fragmented, allowing for multiple strong players to coexist.

The primary competition remains large marketplaces like Amazon, which offer retailers an alternative to managing independent products altogether.

Investment and Future Outlook

To date, PDQ has raised $38 million. The company is not disclosing its valuation following the latest funding round, which was led by PeakSpan Capital, with participation from existing investors TLV Partners and Moneta.