E-commerce solution provider CommerceHub, said today that it received a “strategic investment” from global venture capital and private equity firm Insight Partners, which it will use to accelerate the company’s “platform innovation and expand its solutions to realize the company’s digital supply chain vision.”
Terms of the deal were not disclosed. CommerceHub’s existing lineup of backers, which include GTCR and Sycamore Partners, will continue as investors in the company. The investment now has CommerceHub valued at $1.9 billion.
Due to the growth of online shopping this year as a result of COVID-19, retailers and brands using CommerceHub have collectively seen online order volume swell by 80 percent compared to last year. The platform is designed to help companies maximize online yields.
CommerceHub serves more than 15,000 retailers, brands and distributors, helping them to achieve more than $25 billion in GMV (gross merchandise value) annually, the company said, adding that the platform “connects demand, supply and delivery to help retailers and brands to increase sales by expanding product assortment, promoting products anywhere consumers are, and enabling rapid, on-time customer delivery.”
Frank Poore, founder and chief executive officer of CommerceHub, said the investment announced today “represents yet another new and exciting chapter for CommerceHub. Insight Partners shares our vision that all commerce has become e-commerce and together, we will continue our efforts to advance the capabilities of the digital supply chain.”
Poore is recognized as a pioneer of drop-shipping, having developed the model with Walmart decades ago.
Deven Parekh, managing director at Insight Partners, said CommerceHub “has established themselves as a leader in drop-ship e-commerce, and we believe they will continue to transform the way retailers and brands digitize their supply chains, drive revenue and improve the customer experience.”
Mark Anderson, managing director at GTCR, said as “we continue to see massive disruption in retail, having a resilient and agile supply chain is imperative for retailers and brands, and CommerceHub is uniquely positioned to deliver a strategic advantage in a capital-efficient manner.”
Peter Morrow, managing director at Sycamore Partners, said thousands of retailers, brands and distributors “rely on CommerceHub’s mission-critical solutions to power their online endless aisle.” Morrow praised the partnership with CommerceHub and GTCR, “and now Insight Partners as CommerceHub embarks on its next phase of growth.”