Categories: Investments

VTEX Says New Funding Puts Valuation At $1.7B

Online commerce platform VTEX completed a fund-raising round that puts its valuation at $1.7 billion, the company said in a news release Wednesday (Sept. 30).

VTEX calls itself “the world’s first and only fully integrated commercial marketplace-OMS platform” and said the new funding round of $225 million included Tiger Global, Lone Pine Capital, Constellation, Endeavour Catalyst and SoftBank.

The round “brings VTEX’s total funding to $365 million in the last 10 months,” the company said.

VTEX said its platform “uniquely integrates digital commerce, native marketplace and order management capabilities.”

With a surge in business amid the COVID-19 pandemic, customers now use VTEX to run 3,000 online storefronts, according to the release. The company lists clients including AB InBev, Motorola, Stanley Black & Decker, Sony, Walmart, Whirlpool, Coca-Cola and Nestlé.

“The pandemic is challenging brands in unprecedented ways, and this funding will help us bring our collaborative commerce platform to more brands so they can achieve rapid time-to-revenue despite the challenges they face now and in the future,” Amit Shah, chief strategy officer and U.S. General Manager at VTEX, said in a prepared statement. “It’s exciting to see both B2B and B2C sellers across the globe finding success with collaborative commerce in ways they didn’t think possible.”

The company said it will use the funds for R&D, hiring and acquisitions.

“We are excited to grow quickly in new and existing markets, and offer even more brands a platform that embraces the future of commerce, which is about being collaborative, leveraging marketplaces, and delivering customer experiences that are second-to-none,” Mariano Gomide de Faria, VTEX co-founder and co-CEO, said in a prepared statement. “This injection of funding will undoubtedly support us in achieving our mission to accelerate digital commerce transformation around the world.”

VTEX said its prior funding rounds included $140 million in Series C funding round led by SoftBank.

“We are proud of the VTEX team for having built a next-generation commerce platform that is now present in more than 40 countries, and we are grateful to our customers for trusting us to help them grow business and serve their customers, especially in unprecedented times,” said Geraldo Thomaz, VTEX co-founder and co-CEO.

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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.