Fabric, a tech startup that specializes in the development of e-commerce platforms has raised $100 million in the latest funding round. The arrival of the pandemic has drawn considerable attention toward Fabric’s digital capabilities.
Details about the Latest Funding
The company managed to notch a $100 million investment a few months after it raised $43 million Series A round.
The latest round saw a mix of new and old investors and was led by Stripes, a private equity firm based in New York. It included some new investors which include Greycroft and B Capital Group.
At present, the Seattle-based tech startup is valued at around $850 million according to a source close to the matter.
With this development, Fabric is rapidly moving toward becoming a unicorn and joining the elite list of some privately held tech companies around Seattle.
Some of the noteworthy companies around the Seattle region include Rec Room, Amperity, Zenoti, Highspot, and Outreach.
The company will use the latest funding to get onboard marketing leadership and grow its team of engineers. Besides, Fabric is also looking to expand its partnerships and support potential acquisitions as it continues to penetrate into the Asian market.
What does Fabric do?
The company enables its customers to personalize their websites with digital storefronts. The platform also offers a back-end technology that empowers users to carry out online transactions without any difficulties.
According to the CEO, Faisal Masud, the COVID-19 pandemic has accelerated the demand for e-commerce and reinforced the need to implement a powerful digital technology to improve their website. However, a lot of companies do not have the resources or expertise to achieve their goals.
He also said that Fabric offers guidance and technology that was available only to the most established e-commerce companies.
Many have described Fabric’s e-commerce platform as “modular commerce”. For instance, companies such as Restoration Hardware can utilize Fabric either for their complete stack or just pick from the company’s range of commerce APIs to solve different problems of a system.
Ecommerce Demand in the U.S.
Fabric’s success coincides with the massive boom in online shopping across the U.S. triggered by the coronavirus pandemic.
The digital movement triggered by the pandemic is likely to continue even when the effects of the pandemic subside.
Fabric believes that its platform will empower its customers in the post-pandemic world and allow them to have a robust digital framework in place.
According to DigitalCommerce360, U.S. e-commerce sales surged by around 39% in the first quarter of 2021 .
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 Young. J (2021) “US e-commerce sales climb 39% in Q1 2021” [online] Available from: https://www.digitalcommerce360.com/article/quarterly-online-sales/ [accessed July 2021]