Scalefast Closes $22M Series B To Boost E-commerce Pathway For High-Growth Brands
Digital commerce solution Scalefast announced it raised a $22 million Series B round of funding Tuesday to help brands launch an e-store in as little as 15 days.
The Los Angeles-based company’s mission is to improve agility and speed in the direct-to-consumer (DTC) world, which Scalefast’s founder and CMO Olivier Schott said is known to be slow and expensive.
“We remove the headache from directing your own sales channel and help brands sell directly to their customers,” he said in an interview.
Xplorer Capital, Stereo Capital and FJ Labs led the new round of funding, with participation from existing investors Benhamou Global Ventures, Crédit Mutuel Equity and Adara Ventures. Including the Series B, Scalefast has raised a total of $32 million since its inception in 2014, according to Crunchbase data. Its last fundraise was an $8 million Series A three years ago.
In addition to the financing, Keith Nilsson, managing partner of Xplorer Capital, is joining Scalefast’s board. In a written statement, he said the company iwas executing on its mission to bring speed, flexibility and agility to enterprise e-commerce.
“By delivering the only comprehensive and flexible solution for brands looking to sell directly and scale globally in just a matter of weeks, Scalefast is leading the charge of challenging the status quo in DTC e-commerce and we couldn’t be more excited to be a part of it,” he said.
Between the Series A and Series B, Schott said, the company accelerated its growth as product market fit became clearer. It attracted customers, such as L’Oréal, FLIR and Square Enix, and saw 200 percent growth year over year, he added. The COVID-19 pandemic also brought in a number of inbound inquiries from brands that needed to establish an e-commerce channel when retail stores closed.
Many of the company’s high-growth brand clients aim to differentiate themselves as well as attract fans—not just customers—with exclusive products and offers, Schott said. Their challenge is competing for attention and money against indirect channels.
“If you are really a fan, it isn’t about the price but the value you get,” Schott said. “We believe e-commerce is a matter of survival for brands because when customers buy through Amazon or Walmart, they can’t get to know their customers or give VIP service.”
Given the increased demand, Scalefast plans to use the new funding to expand its team, footprint, awareness and product offering to further support existing and new customers.
The company has 130 employees right now and expects to double that amount in the next few years as it explores its geographical footprint, Schott said. The company is already established in Europe and North America, with offices in LA, Paris and Madrid, and is looking to Asia.
“With increased demand for our solution, we want to be able to absorb projects coming in while covering existing clients,” he said. “With this new funding, we can create a sales and marketing budget and really make some noise.”
Author: Christine Hall