Elastic Path Software has raised $10 million.
The round was led by Yaletown Venture Partners and the BDC Venture Capital IT Fund.
Elastic Path says the funds will be used to grow the Canadian company’s software-as-a-service revenues, deepen investment in partner channels, and continue driving technology innovation for its recently patented commerce platform.
“Our customers are telling us that omnichannel service is no longer an option for doing business, it’s a requirement,” says Harry Chemko, CEO. “This is forcing companies to rethink their current marketing and customer service strategies.”
According to eMarketer, ecommerce sales will hit 9.0% of total retail sales this holiday season, or $79.40 billion, up from 8.3% share last year. They also predict that by the end of 2016, 25.0% of all retail e-commerce sales in the US will take place via mobile devices.
“Buyers want the ability to shop from one channel to the next and assume the brand will recognize their preferences and actions,” notes Chemko. “It’s no longer about offline or online, in-store or e-commerce – it’s simply the new expectation of business, and commerce.”
According to Forrester Research, the spending will almost double from $1.2 billion in 2014 to just under $2.1 billion in 2019. On average, companies will upgrade their commerce platforms every five or six years through 2019, as opposed to seven years or more before 2014.
“Changing consumer preferences in online buying are forcing retailers to adopt new technologies in order to extract maximum value from their brands and sales channels,” says Mike Satterfield, general partner at Yaletown Venture Partners.