PrivCo Logo

Move over Amazon; headless commerce is taking over.

Move over Amazon; headless commerce is taking over.
February 17, 2021

The Daily Stack is a daily private market insights newsletter by PrivCo, a private company intelligence platform. Read our previous insights.
If you have friends who would enjoy reading this newsletter, please forward this email to them.

E-commerce has come a long way, with companies like Amazon and e-commerce platform builders like Shopify growing from tiny start-ups to kings of the retail mountain. As e-commerce continues to evolve and consumers get more tech-savvy, we are seeing a greater merchant adoption of headless commerce architecture that marries customer experience with full-scale e-commerce capabilities like seamless checkout processes and personalized experiences. Because of their flexibility and adaptability and in light of future e-commerce growth, businesses that support headless commerce are attracting greater investor interest. 

But what exactly is headless commerce? 
In simple terms, headless commerce is a website architecture that separates the front-end (which a customer sees) from the back-end with includes the e-commerce application. This separation helps merchants to be more flexible and consistent on the presentation of their website to their customers and creates less downtime when updating either end, as they are separate within the tech architecture. The front-end and back-end of the site communicate through APIs to ensure seamless data flow.

What is the difference? 
Traditional e-commerce generally uses a monolithic strategy of the same enterprise provider for software and hardware and features predetermined interactions and setups. In a real-world example, this architecture is similar to walking through a department store with predetermined aisles, where customers experience what merchants anticipate will be popular. From a technology perspective, this anticipation means the e-commerce platforms need to maintain large infrastructures that are predictable and can't be changed very often. In comparison, headless commerce has the flexibility to change and be responsive to customers and trends since the front-facing site is detached from the back-end infrastructure and can be updated constantly without disruption. 

Companies powering headless commerce

  • Big Commerce is an online marketplace company that powers the back-end of headless commerce architecture. Headquartered in Austin, Texas, the company went public in August 2020 under BIGC. 
  • Fabric is a startup from Bellevue, Washington, that raised a $43MM A Round this month after raising seed funding just 4 months prior. Similar to Big Commerce, it provides an e-commerce platform for merchants to sell directly to customers.
  • Shogun helps build the front-end of an e-commerce platform with easy drag and drop functions and pre-made templates. In October, 2020, the Burlingame, California-based company raised its Round B of funding led by Accel Partners. It boasts 15,000 companies using its platform and 182% growth in revenues YOY. 
  • Nacelle closed an $18MM Series A funding round in January 2021 after raising its seed equity round in July 2020. The startup helps optimize e-commerce sites on the front-end for faster loading using progressive web applications (PWAs).
Amazon of Korea files for IPO
The projected IPO valuation of Coupang, which is backed by Softbank, is more than $50BN.
[Read More]
Interview with Bowery 
The CTO of indoor agtech startup Bowery Farming talks about the challenges of using AI for indoor farming.
[Read More]
Since last week, PrivCo has added:
204,553 Companies |  181 Funding Activities |  169 M&A Deals

Funding & Deal Highlights:

BharatPe raises $108MM led by Coatue Management
Payments Software & Internet Services • Round D • New Delhi, India

PlusAI raises $200MM
Transportation Software & Internet Services • Round B •  Cupertino, CA

RapidSOS raises $85MM
Emergency Services Software & Internet Services • Round C • New York, NY

Nymbus raises $53MM led by Insight Partners
Fintech Software & Internet Services • Round C • Miami Beach, FL

Marble Pay raises $2.5MM
Fintech Software & Internet Services • Equity • New York, NY

BigHat Biosciences raises $19MM led by Andreessen Horowitz

Biotechnology • Round A • San Carlos, CA

Seraxis raises $40MM
Health Care Software & Internet Services • Round C • Germantown, MD

GrubMarket raises $90MM
Grocery Software & Internet Services • Round D • Newark, CA

Accord raises $6MM led by Y Combinator
Workplace Management Software & Internet Services • Seed • Half Moon Bay, CA

Labster ApS raises $60MM led by Andreessen Horowitz
EdTech Software & Internet Services • Round C • Somerville, MA

IBM acquires Taos Mountain
Technology Services • Acquisition• San Jose, CA

Fiverr acquires Working Not Working
Technology Services • Acquisition • Brooklyn, NY

Rapid API acquires Paw 
API Software & Internet Services • Acquisition • Wilmington, DE

Forward to a Friend Forward to a Friend
Not a subscriber yet? Sign up here!
Have an interesting topic you want us to include. Let us know!
Copyright © 2021 PrivCo Media, LLC. All Rights Reserved.
Unsubscribe | | Contact Us
PrivCo Logo

© 2024 PrivCo Media, LLC


HomeSign inContactPricing