It's easy to think that the e-commerce ship has sailed, given that giant platforms like Shopify, WooCommerce, and Wix dominate the space. However, the field of e-commerce remains vast and fertile, as so many small and medium-sized businesses continue to go online in the wake of the pandemic.
Further evidence of this has surfaced in the form of one of the largest financings by a Turkish startup, given that the average Series A is typically less than $15 million. E-commerce platform ikas has raised $20 million in a Series A funding round as it looks to expand into new markets in Europe. The company currently operates in Turkey and Germany, and says its platform simplifies store management for companies looking to establish a digital presence.
The investment was led by the International Finance Corporation (IFC) Fund, the venture arm of the World Bank Group.
Mustafa Namoğlu, co-founder and CEO of ikas, told TechCrunch that the company will use the new funding for international expansion in Eastern Europe and the DaCH region.
He said: “Most regions of Europe are largely ignored or underserved by the US-based giants.” “Global platforms don't have customer service in local languages. Starting with Shopify, for example, seems easy. However, once you start, you'll need to add other plugins, and in some cases run it. You may need an agent.”
Namoğlu said that ikas is able to attract customers compared to other platforms because it is a “fire and forget” platform. “The number one reason our merchants choose us over others is our speed in-store, which gives us a high conversion rate. It's ready to go. The second reason is customer service. Third, payments and shipping labels are bundled with our core product, meaning you don't have to negotiate with payment providers or shipping labels. Instantly. I’m ready to leave,” he said.
Namor previously founded fashion distribution and retail company MUGO and launched Ikas in 2017 with co-founders Tugay Karassai, Omelkan Çelikler and Umut Ozan Yildirim.
IFC invests directly in companies as well as through PE and VC funds.
Ikas is also invested in by Re-Pie Asset Management, whose portfolio includes grocery delivery startup Getir. The round also saw participation from Getil, Param, Midas and Ikas' existing investor Revo Capital, best known as the first institutional investor in Roamres.