Contemporary businesses increasingly recognize the necessity of adaptable e-commerce strategies, capable of reaching potential customers across all channels. This market demand has spurred a substantial funding increase for a company assisting larger enterprises, including those in the B2B sector, in developing more nimble and responsive digital sales operations.

Spryker, a provider of a comprehensive suite of e-commerce solutions for businesses – encompassing a platform for online inventory management, analytical tools to track sales performance, and features like voice commerce, subscriptions, click & collect, IoT commerce, and other innovative channels – has secured $130 million in funding.

The company intends to utilize these funds to enhance its technological capabilities and expand its global reach. Currently generating revenues in the mid-eight-figure range (approximately $50 million per year), Spryker derives roughly 10% of its income from the U.S. market, a segment it plans to grow as part of its broader expansion into an e-commerce software market estimated at $7 billion annually.

This Series C funding round was spearheaded by TCV – a well-known investment firm with a portfolio including prominent companies such as Facebook, Airbnb, Netflix, Spotify, and Splunk, as well as emerging e-commerce technology companies like Spryker and Relex. Existing investors One Peak and Project A Ventures also participated in the round.

Sources indicate that this latest investment values Berlin-based Spryker at over $500 million.

Spryker currently serves approximately 150 customers, ranging from well-known fashion brands to “hidden champions” – leading companies operating in niche markets, as described by co-founder and co-CEO Boris Lokschin, such as those selling specialized components like silicone isolations for windows. Notable clients include Metro, Aldi Süd, and Toyota.

The company’s strategy involves continued support and development of its e-commerce tools for large organizations, with a particular focus on capitalizing on the B2B opportunity by creating more agile e-commerce storefronts and, in some instances, developing dedicated marketplaces.

It is often assumed that businesses directly serving consumers require the most dynamic and responsive e-commerce approaches, given the competitive landscape and potential for customer distractions.

However, businesses selling to other businesses are equally susceptible to challenges in attracting and retaining customers, particularly in the current economic climate impacted by the global health crisis.

“Our experience has shown that the key to B2B success online isn’t about different people or increased budgets; it’s about having the right tools,” explained Graf. “Companies that can adapt and experiment quickly are the ones that thrive.”

Spryker aims to empower larger businesses to achieve this agility, mirroring the solutions that smaller merchants have adopted from platforms like Shopify.

This situation draws parallels to the dynamic between Walmart and Amazon, now unfolding across various sectors, including B2B commerce.

“One of our clients, traditionally focused on trade-only sales, was compelled to establish a marketplace due to limitations in its physical store assortment and accessibility,” Lokschin noted. “The question arises: who truly benefits from a wider selection? But new players like Mano Mano and Amazon, offering millions of products, are forcing established companies to evolve into marketplaces to maintain competitiveness.”

Interestingly, Spryker itself recognizes the value of the marketplace model and intends to use a portion of the funding to develop a technology AppStore, offering third-party tools to complement its existing e-commerce solutions.

“We currently integrate with hundreds of technology providers, including 30-40 payment processors and all major logistics networks,” Lokschin stated.

Spryker is categorized as a “headless” e-commerce provider, utilizing API-based architecture and easily integrated modules delivered through a Platform as a Service (PaaS) model.

Several other companies operate in this space, including Commerce Layer in Italy, Commercetools in Germany, and Shogun in the U.S.

Spryker differentiates itself by being a newer company, founded in 2018, which it believes gives it a more modern technology stack compared to older startups and established players like SAP and Oracle.

This advantage contributed to TCV’s investment decision, as the funding round was finalized sooner than initially anticipated.

“The commerce infrastructure market is a key area of focus for TCV, driven by the rapid growth of e-commerce,” said Muz Ashraf, a principal at TCV, in a statement to TechCrunch. “We’ve invested in various aspects of the commerce stack, including payments (Mollie, Klarna), infrastructure (Redis Labs), and customer engagement systems (ExactTarget, Sitecore). Traditional businesses are increasingly re-evaluating their digital commerce strategies, particularly in light of current events, which is accelerating market growth.”

“Having closely followed Spryker’s progress, we believe their solution addresses the needs of enterprises seeking modern, flexible solutions that allow them to adopt a best-of-breed approach, future-proof their commerce offerings, and deliver innovative customer experiences.”