The e-commerce market saw rapid growth post-pandemic. Shopware, which provides its users with a collection of open-set tools to power up the experiences from online shopping, does business with about 100,000 large and middle-sized brands.
The funding amount is quite notable because of its immense value and context, as this is the first outsider funding raised by Shopware, since they were founded in 2000 and have had a prosperous experience in the market with significant profits. PayPal and Carlyle are making these investments, being their first two outside investors.
The co-CEO of Shopware, Stefan Hamann said that the funding will help them enormously to grow internationally by capturing significant opportunities. They are proud of being profitable since the beginning and want to establish a stable position after working with PayPal and Carlyle. Sebastian and Stefan Hamann, who co-founded the company in the simple town named Schöppingen in north-west Germany, will retain a prominent stake in Shopware, sticking to their positions as co-CEOs.
Shopware has been serving mid-market brands and companies that are not quite digitally native in their business models but were bound to transform to digitized grounds to keep up with the market. In other words, the tools made by Shopware help companies to own a presence and compete with the remaining online landscape, making it an easier approach for non-tech companies and their partners as well to use it. Some of its customers are M&Ms and Haribo, while some consumer electronics companies are Stabilo and Philips, along with many others.
The mid-market brands have always had an undeserved path for years. With the pandemic, rapid growth in e-commerce was seen, up to a point where it was the only possible option for some time. This has increased the need for digitization among companies, along with an increase in the companies that build tools allowing digitization. The major competitors of Shopware at present are Magento, Plus, Shopify and other online shopping experience platforms, which include a mixture of several components be it through their own website, their app or social media sites and markets.
With Shopware initiating to work with PayPal, it is clear that PayPal is about to use Shopware as a vehicle to channel more of its latest initiatives, while it keeps on looking at the growth of its personal payment business, apart from the basic transactions. However, the deal won’t stop Shopware to continue working with its competitor of PayPal.
Currently, the tools of Shopware include a platform that helps customers to operate several services in an experience made by bringing some e-commerce services together. Their plan is to efficiently use this funding not only against the tools built by the competitors of Shopware but also to explore opportunities from new areas like B2B, or building a brand that won’t sell to customers, working with business users.