Cart.com Secures $60 Million in Series C Financing, Reaching a Valuation of $1.2 Billion.
The company plans to leverage the investment to cater to the growing needs of B2B and enterprise clients and to fuel its expansion into global markets.
Funding Round Info:
Cart.com, a premier provider of all-inclusive commerce solutions, has today declared a successful raise of $60 million in a Series C all-equity funding round, which has skyrocketed the firm's pre-money valuation to $1.2 billion. This reflects a near 50% valuation uptick since the Series B funding of February 2022. The funding round witnessed active involvement from several strategic corporate and financial investors, such as B. Riley Venture Capital, Kingfisher Investment Advisors, Snowflake Ventures, Prosperity7 Ventures, and Legacy Knight. This fresh infusion of capital will be channeled into catering to the surging demand from enterprise and B2B clients, accelerating the firm's global outreach, and boosting product development across its software portfolio. Founded in November 2020, Cart.com has emerged as one of the fastest-evolving leaders in commerce and logistics enablement, boasting nearly 6,000 brands on its platform. Remarkably, the firm recorded an astounding 500% revenue growth in 2022 across its software, services, and fulfillment offerings, whilst doubling its gross merchandise value and fulfillment footprint. The funding round came with no structure or liquidity preferences.
About Cart.com:
Cart.com is a platform that provides retail brands with the necessary tools to expand their businesses and effectively distribute across various channels to optimize their revenue and customer base. The company's software and services offer a range of e-commerce capabilities that were traditionally only accessible to large-scale enterprise entities. Partnering with over 5000 brands, Cart.com offers access to multichannel management, fulfillment, marketing, analytics, customer engagement, and other e-commerce features, which were once exclusively available to the globe's most substantial companies.
About B. Riley Venture Capital:
B. Riley Venture Capital is a growth partner that invests in late-stage private growth companies that are on a path towards public markets. Unlike a venture fund, their investments are made off-balance sheet and syndicated across their institutional, banking, and retail client base. The venture capital arm was launched in November 2020 and has since made investments totaling $95 million across 17 deals. Their target investments are later-stage private growth companies with annual revenues between $20M and $200M. These companies are typically seeking growth capital and are ideally in their final round of funding before going public. B. Riley Venture Capital is industry-agnostic.
In terms of their investment profile, they typically do not lead rounds. Instead, they participate by allocating between $1 million and $10 million as part of a larger round (Series B, C, or D). Their investment horizon targets 2-3x returns over two to three years. The deals are syndicated across the B. Riley institutional, banking, and retail client base, targeted at 50%. The deals are structured as an SPV with a 7% upfront fee; there are no ongoing management fees or carried interest. The President of B. Riley Venture Capital is Todd Sims, who has a rich background in digital strategy and has been involved in building Internet businesses for over 15 years. He also serves as an advisor to the L.A. Dodgers Tech Accelerator and is a guest lecturer at the University of Southern California's Marshall School of Business. Recent investments include Sollis Health, GrubMarket, and pura.
About Kingfish Investment Advisors:
Kingfisher Investment Advisors is a venture growth firm that caters to the needs of mid and late-stage, high-growth, private technology companies and their shareholders. They provide growth-equity to these companies and offer individual shareholders an opportunity for early liquidity. Kingfisher's current funds, which are now closed and not accepting new investors, have made investments in over 40 portfolio companies. The investments range from $2.5M to $25M, with a typical investment size of $5M to $10M. The firm prides itself on working collaboratively with management and shareholders, and they are known for closing their investments quickly and discreetly. Unlike other firms, Kingfisher maintains a strict confidentiality policy, never disclosing the names of their portfolio companies or discussing the selling shareholders.
About Snowflake Ventures:
Snowflake Ventures is the investment arm of Snowflake, a cloud-based data platform. They believe in the network effect of the Data Cloud, and their aim is to foster innovation by investing in companies that demonstrate a commitment to mobilizing data, providing value to their customers, and expanding opportunities for the Data Cloud. Their portfolio includes companies in various sectors such as Data Science, Data Engineering, Data Visualization, Data Security, Data Governance, and Data Industry. However, they do not disclose specific names of the companies they have invested in.
In addition to their investment activities, Snowflake Ventures also hosts the Snowflake Startup Challenge. This event brings together early-stage startups to build applications and products in the Snowflake Data Cloud. The top three finalists of the challenge stand a chance to receive financial investment from Snowflake of up to $1 million in potential investments, along with marketing exposure, exposure to top-tier VCs, and more. Some of their recent investments, as mentioned in their blog posts, include Cybersyn, Material Security, OpenAP, Tecton, and Domino Data Lab. These investments reflect Snowflake Ventures' commitment to enhancing data products, security, advertising, data science productivity, and model training, deployment, and monitoring on the Snowflake Data Cloud.
About Prosperity7 Ventures:
Prosperity7 Ventures is a venture capital firm that invests globally with a long-term view to support the development of next-generation technologies and business models. They back exceptional entrepreneurs to build transformative companies and solve some of the world’s toughest problems. As the $1B diversified growth fund of Aramco Ventures, Prosperity7 provides venture funding that presents an unparalleled opportunity for international scalability and impact. They understand that the foundations for success lay not just in securing startup capital but in building long-lasting partnerships, providing quality mentorship, and gaining access to a network of leading venture capital firms and market experts around the world.
Their investments range from early-stage enterprise, blockchain, financial and industrial technologies to medical and healthcare solutions. Industries as diverse as medtech, fintech, and B2B SaaS all fit comfortably within their investment strategy. Their VC offices in Dhahran, Beijing, Shanghai, New York City, and San Francisco support startups with venture capital, local knowledge and connections, and access to markets around the globe. They provide unique access and connections to markets in the Middle East, China, and the developing world. Prosperity7's portfolio covers a range of industries including DeepTech, Robotics/AI, MedTech/BioTech, Mobility, SecurityTech, FinTech, eCommerce, Cloud/Computing, and Foodtech. They provide their portfolio companies with the funding and connections they need to scale quickly, enter new and emerging markets, and attain global reach.
About Legacy Knight:
Legacy Knight is a multi-family office platform that offers exceptional family office management and premier investment access to ultra-high net worth families and family offices. The firm is designed to foster a vibrant ecosystem among its partner families, team, and advisory board. This ecosystem is aimed at generating best-in-class investment themes and empowering partner families to attain their desired financial legacy. Legacy Knight is based in Texas, with offices in Dallas and Houston. They are committed to innovation and strive to provide a high level of service to their clients. The firm's approach is centered around understanding the unique needs and goals of each family they work with and providing tailored solutions to meet these needs.