French marketplace software company Mirakl raises $ 555 million in late-stage funding
Company marketplace provider in France Mirakl SAS said today it has raised a hefty $ 555 million round of financing that more than doubles its valuation to $ 3.5 billion.
The Series E cycle was led by Silver Lake and also saw participation from existing investors 83North, Elaia Partners, Felix Capital and Permira.
Mirakl has created a software-as-a-service platform that businesses can use to build and manage e-commerce markets on their websites, like Amazon.com Inc. does on its own website. In e-commerce, large companies tend to allow third parties to sell products and services on their website in order to increase the usefulness of their own offerings and to better serve customers.
By creating a market, companies can sell additional products from other companies to their customers, taking a small portion of those profits in some cases and keeping everyone happy. So, for example, a furniture company can create a marketplace where it can sell household appliances.
Mirakl co-founder and co-CEO Adrien Nussenbaum told SiliconANGLE that with the acceleration of e-commerce during the pandemic, customers in all industries are demanding to have it all, at all times and not to no matter where. He said the only option for businesses to meet these new customer demands in a fast, scalable, low-risk manner is to establish a market.
“Markets have captured a disproportionate share of growth, growing twice as fast as overall e-commerce, as they allow companies to connect with a wider set of suppliers with alternative supply chains offering more than products and services, ”Nussenbaum said.
Mirakl software helps companies create and manage such a market. It says more than 300 of the world’s biggest brands, including Kroger Co., ABB Ltd., Carrefour SA and Leroy Merlin SA, use its platform.
In addition, Mirakl’s SaaS product also powers a number of business-to-business marketplaces too much. These industry-specific portals are used by large companies for procurement purposes and for parts wholesaling, for example. In this segment, Mirakl’s customers include Airbus Helicopters SAS, Astore d’Accor SA and Toyota Material Handling.
The company also has a specific market platform for companies wishing to sell services, as opposed to physical products.
Mirakl says it uses artificial intelligence to power its catalog management tool that allows companies to merge different listings and add information to their market. Other AI-enabled features include fraud detection.
Mirakl is also a kind of marketplace of marketplaces with its Mirakl Connect service. A seller can create a company profile and promote their products in several different markets powered by Mirakl at once. Marketplace operators can view these profiles to see what products companies might like their customers, and add them quickly and easily.
Nussenbaum said the company sees Mirakl Connect as an essential part of its present and future, as it is the vendors who act as the fuel that powers the growth of the market. By developing Mirakl Connect, the company will help its customers quickly integrate new products into their markets. This is important, Nussenbaum said, because each new seller added to a market earns the trader an average of $ 15,000.
“To successfully launch and grow, companies that operate marketplaces must have a strong and growing base of high-quality, trusted sellers,” said Nussenbaum. “When you partner with trusted sellers in the market, you are able to offer customers more choice and more competitive prices while building the strength of your own brand. “
Mirakl Connect also enables marketplace operators to access third-party technologies from various payment service providers, fulfillment companies and flow aggregators that provide extensive options to their customers.
“This revives the ability of industry leaders to unlock exponential growth in markets,” said Nussenbaum. “There is no limit to the number of marketplaces a market can support. With the right strategy, there can be as many marketplaces as there are trusted brands. “
Nussenbaum added that not all markets have to be a digital giant like Amazon. “On the contrary, the market model is a way for businesses of all kinds to meet new customer demands and expectations by providing a better experience,” he said. “There is a lot of traffic to be gained, but it forces marketplaces to quickly scale their catalogs with high quality sellers.”
All in all, this is a fairly comprehensive offering, and given the nature of today’s world affected by the pandemic, it’s no surprise to learn that business is booming for Mirakl. The company reported 90% year-over-year growth in bookings in the first half of this year, for example, although it did not reveal absolute numbers.
Mirakl has set a number of ambitious goals in light of its new funding. First, it plans to hire 350 new engineers by 2023, bringing its Mirakl Labs team to 500 to expand the capabilities of its marketplace technology platform. In particular, the focus will be on expanding AI, automation, and features that enable new business models such as the expansion of drop shipments.
The company will also double the size of its customer success team and has big plans to expand Mirakl Connect, while increasing its global presence in Europe, the Middle East and Africa, the Americas and the Asia- regions. Peaceful.
Constellation Research Inc. analyst R “Ray” Wang told SiliconANGLE that the future of e-commerce does not lie in another transactional system, but rather in multi-sided marketplaces.
“Mirakl is interesting considering its size and scale,” Wang said. “AppDirect, Ingram Micro, and CDW are all potential players in this space as well, but customers, partners and vendors are looking for easy-to-use templates. But for now, Mirakl has some good things to do and a worthy valuation.
“This is an extraordinary time for e-commerce, and we see Mirakl as a generational company with a unique and compelling opportunity to capitalize on this momentum,” said Christian Lucas, Managing Director and Co-Director of Silver Lake EMEA.