E-commerce tech platform Fabric has announced that its valuation has reached $1.5 billion after the latest funding round led by SoftBank. Fabric is looking to make the most of the recent opportunities that have opened up in the online shopping space fueled by the pandemic.
Some of the other investors that participated in the Series C round include Glynn Capital, Redpoint Ventures, Forerunner Ventures, and Norwest Ventures.
Fabric provides a headless commerce platform as a service to merchandisers, sellers, and retailers to organize their e-commerce processes. The self-proclaimed “headless” e-commerce platform primarily separates the front and the back-end of e-commerce applications and websites. This gives them flexibility and faster page-loads to help them grow their business.
Tech companies taking the IPO route
Over the past couple of years, a lot of tech companies have taken the IPO route and raised capital at a very high valuation as their services and products cater to the digital economy.
In December, Rezolve landed a deal with $2 billion to go public in the U.S. The company did so by merging with a company that is backed by billionaire Betsy Cohen.
Fabric’s clients and how the platform helps them
Some of Fabric’s clients include fast-food franchise McDonald’s Corp, The Honest Company Inc., and apparel retailer Chico’s FAS Inc. and more.
The Washington-Seattle-based company’s software enables companies to personalize their website and also provides back-end technology for online payment transactions.
Fabric has built the platform for large retailers who sell their products through multiple online channels. The platform allows retailers to perform operational tasks across their sales channels, minimizing duplicate activities.
A set of features on Fabric’s website primarily focuses on enabling companies to manage their product information. Another bunch of features allows the retailer to manage inventory levels and logistics. The e-commerce platform also offers functions to manage a lot of operational tasks such as payment processing and more.
What makes Fabric stand out from Shopify? The company says that its modular approach makes the difference providing them an edge over their competitors.
How will Fabric utilize the funds from Softbank?
Fabric e-commerce will use the recently raised funds in the latest round to improve product development and enter new markets.
In 2021, the e-commerce tech platform successfully raised $100 million in a Series B round that was led by private equity company Stripe.
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