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Elastic Path closes USD43M Series B funding led by Sageview Capital

Elastic Path, a specialist in enterprise headless commerce solutions, has closed a USD43 million Series B growth investment, led by Sageview Capital and with participation from current investors, Yaletown Partners and BDC Venture Capital.   

The company has now raised a total of over USD63 million.
 
“Sageview provides highly complementary strategic and industry knowledge to our investor base.  We look forward to leveraging the firm’s domain expertise, resources and shared vision to support Elastic Path’s goals for product evolution and market expansion,” says Harry Chemko, CEO of Elastic Path.”
 
Increased company momentum, including recent European customer wins such as telecommunication company Swisscom, and French electronics giant Boulanger, is spurring the investment. Elastic Path has experienced a 120 per cent increase in subscription revenues and a doubling of their partner ecosystem, adding systems integrators IBM iX, TCS, Cognizant and Sirius to existing top-tier partners Accenture, PwC and Deloitte Digital. For the third year in a row, Elastic Path has ranked highest in “ability to execute” and “completeness of vision,” in the Visionaries quadrant of Gartner’s 2018 Magic Quadrant for Digital Commerce.
 
“We are pleased to lead this important capital raise for Elastic Path, a company that is pioneering API-oriented commerce,” said Ned Gilhuly, Co-Founder and Managing Partner, Sageview Capital. “The inherent flexibility of Elastic Path Commerce allows companies to re-imagine their relationships with customers in the digital age.  We are convinced that Elastic Path has the technology for the future in a rapidly evolving market and we look forward to providing the company with both the financial and operational resources it needs to continue disrupting the marketplace.  We are also proud to mark our third major investment in a technology business headquartered in Canada – a nation well known for fostering technology and ecommerce development.”
 
Elastic Path’s success is due in part to incumbent vendors like Oracle, IBM and SAP struggling under the weight of their now decades-old technology. Systems integrators are turning to nimbler API-based technologies to build commerce systems for new generations, especially with the emerging power of Gen Z and the Internet of Things finally coming of age.
 
Gen Z is the first generation of digital natives who learned to swipe before they learned to walk. They are projected to soon become 40 per cent of the consumer segment in 2020. 70 per cent of them prefer to do as much online shopping as possible. The IoT is coming of age with a predicted USD15 trillion investment in B2B and B2C that will mean companies must coordinate dozens if not hundreds more ways customers can purchase, opening a tremendous opportunity for the right commerce solution like Elastic Path.
 
“The decision to purchase a digital commerce system is one of the most difficult a company can make, since the future of the entire business hangs on its success,” adds Chemko. “We want to minimize the risk for large corporations contemplating their inevitable digital transformation. We’ll be using this funding to significantly ramp-up research and development efforts to address the B2B market and continue innovating on our industry-leading architecture.”

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