Pattern raises $225 million, and its CEO predicts that e-commerce accelerators will ‘win the day’ against aggregators
Pattern, an e-commerce accelerator located in Lehi, Utah, that helps companies maximise sales on marketplaces such as Amazon, Walmart, Target, eBay, and Google, has raised $225 million in expansion investment to continue developing its technology and expand its worldwide footprint.
Knox Lane took the lead in the new round. This round takes Pattern’s total pre-money valuation to $2 billion, according to co-founder and CEO David Wright, and it is the “biggest raise by a home-grown, female formed or co-founded firm in Utah.” To far, the firm has received more than $275 million, including a $52 million Series A round reported in August 2020.
Melanie Alder and Wright founded the firm in 2013, and it hopes to reach $1 billion in sales within the following year. Its goal, according to Wright, is to assist companies gain a slice of the $6 trillion global e-commerce market, which is fueled by Asia and payment options like purchase now, pay later.
Unlike e-commerce aggregators, which buy smaller brands that sell on marketplaces and use technology to run and scale them more efficiently, Pattern’s platform works with brands for free to accelerate sales by purchasing inventory, determining sales gaps, optimising it across marketplaces, and identifying insights for increasing margins.
With firms like Thrasio, Berlin Brands, Perch, and others competing in a fiercely competitive industry, Wright refers to the past year as “the year of the e-commerce aggregator.” In only 2021, these firms have raised billions of dollars in stock and loan investment.
“Our assumption is that Pattern and others will succeed because we are focusing on growing brands and executing rather than acquiring and aggregating EBITDA,” Wright continued. “These tales are still unfolding, but the notion of accelerators versus aggregators is essential. They are basically purchasing brands, but will be unsure what to do with them in a year or two. I don’t think aggregators will survive unless they become accelerators.”
Pattern currently employs over 900 people and works with over 100 businesses across the world.
Pattern will prove to create a great difference for such giants of marketplace.They will also prove themselves in expansion market and the global market.My best wishes to them!Shishir Gupta, Founder and CEO, StartupLanes
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