Bigcommerce is a software service for small to medium sized businesses that helps them set up online shops. The company just raised a new $50 million investment led by Softbank Capital as it stays on track to become the premier back-end provider for online storefronts.
Founded by CEO Eddie Machaalani, Bigcommerce offers businesses tools to do things such as set up and host online shops by selling subscriptions to its software platform. Businesses are also given the tools to set up the shops on both desktop and mobile devices, run promotions and optimize their shops for search engines.
The $50 million round also included contributions from new investors like Telstra Ventures and American Express Ventures. So far Bigcommerce has raised a total of $125 million in funding. According to the company the new round will be used to launch its service in new areas around the world, invest in new software products and ramp up its marketing and sales departments.
Machaalani says that from a strategic standpoint the investors could help open up doors that otherwise would have been tough to break through, pointing out that his firm’s relationship with the Japanese giant SoftBank could possibly lead to partnerships between Bigcommerce and companies such as Yahoo Japan. SoftBank holds large stakes in Sprint and Yahoo Japan, so a future deal could very well be within reach.
Another SoftBank investment includes Alibaba Group which could also help strengthen their relationship with Bigcommerce. Currently Alibaba Group helps Bigcommerece merchants buy wholesale merchandise on Alibaba.com.
Additionally, American Express Venture’s investment comes with an agreement that says its parent company will work with Bigcommerce on joint marketing initiatives that target small companies.
This investment is a huge step for Bigcommerce. The company received good news just months ago that eBay was shutting down two of its ecommerce products and recommended that the 10,000 businesses using them work with Bigcommerce.
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