Shopify Raises $100 Million, Eyes Future IPO
Dec. 16, 2013
Near the end of last week, e-commerce platform provider Shopify revealed it had raised $100 million in Series C financing. The company began its life as a merchant but abandoned retailing when the software it built to run its e-commerce storefront became a better product than the snowboards it was selling.
This year Shopify has made several major announcements, moving into the physical realm with Shopify POS and becoming a PSP by launching Shopify Payments . The company will use its new capital infusion to continue toward what CEO Tobias Lütke calls its true ambition: “To be the first company in the world that fuses all the distinct parts that are needed to run a complete modern commerce business—all in one amazing product.”
According to published reports, investors in this round—led by OMERS Ventures and including Insight Venture Partners, Bessemer Venture Partners, FirstMark Capital, Georgian Partners and Felicis Ventures—netted 10 percent of Shopify, suggesting a valuation of $1 billion. In addition to enhancing its POS solution, press reports said investors also expect the company to “update its corporate infrastructure” in preparation for an IPO within the next two years.