First 65, then 120 and again 60. These are the millions of dollars in funding rounds with which funds and large companies have financed Shop Circle, a startup dedicated to the B2B business that, through a wide range of apps and software solutions, enhances and turbocharges the e-commerce of other companies. Founded in 2021 by two Italians, Luca Cartechini and Gian Maria Gramondi, the young company was born in London and has remained there despite Brexit because, as the founders themselves point out, ‘London remains the capital of European venture capitalists’.
From zero to 120,000 customers
Before reaching the numerous rounds of financing, Cartechini and Gramondi found their idea of life following two different paths. The first had financial experience in investment banking and startup investments, while the second developed skills in consulting and then at Amazon. Two different but congenial backgrounds met halfway, with the union being founded in an attempt to reduce the digital innovation gap of the vast majority of companies, tied to outdated methods and obsolete solutions.
Hence, the idea is to create a platform capable of offering intelligent and effective automation tools to optimise workflows and improve decision-making processes in order to promote the sustainable growth of companies. The first customers were the companies where the two founders had previously worked, but over the years the number of customers has exceeded 120,000, demonstrating that Shop Circle’s philosophy works well.
80% of the customers are small businesses, but the list also includes popular brands such as Nespresso and Patagonia. The startup relies on Shopify, the world’s most widely used platform for e-commerce sites, as it facilitates the creation of the digital sales channel. However, what makes the difference are the numerous proprietary solutions, about 40, that Shop Circle makes available to companies dedicated to online sales.
Many financiers and constant growth
This laid the foundations for attracting the interest of customers and investors. A series of financing deals were finalised, which allowed the company to obtain a total of 245 million euros. This money has been used to develop new solutions to refine and increase the business of customers, as well as to structure a company that today has 300 employees and an activity that continues to grow and expand geographically. 50% of revenues come from North America, but Europe is increasing the pace of growth.
The link with the United States was facilitated by the fact that the startup’s headquarters were established in the United Kingdom. ‘Our rounds were mostly led by American investors, also because we operate in London, a city that facilitates contact with overseas investors,’ explained the founders. So, between the old and more recent rounds, there is a notable presence of American funds such as Endeavor Catalyst (which has invested in Glovo, D-Orbit, Satispay, 54Gene and Bending Spoons), but also American institutional investors such as NfX and QED Investors.
‘With revenue growth of 110% year on year and sustainable profitability, the goal is to double again in the next 12 months, expanding into new sectors and continuing to develop advanced AI for the B2B sector, not only as an innovative driver but as a concrete generator of value for hundreds of thousands of customers’.
The future belongs to AI
The words of Cartechini and Gramondi commenting on the latest round – 60 million dollars, divided equally between equity and debt – illustrate what Shop Circle’s priorities will be in the near future. The startup’s goal is to broaden its offer and expand into new verticals through acquisitions. This is to be pursued through the skilful use of AI and solutions based on this technology. The assumption is that AI is becoming increasingly accessible and integrated into business software, with the reduction of costs and the development of open-source models that are opening up new horizons.
Whereas previously, large amounts of money had to be spent on APIs, the many Large Language Models available now allow for the creation of customised solutions at a much lower cost. This radical transformation favours and accelerates the growth of companies and, consequently, of those who work to provide them with the best solutions, such as Shop Circle.
In this context, the startup’s large number of customers is crucial, as it can analyse performance and anticipate the needs of companies with tools built to address their different requirements. ‘AI is the core of our technological infrastructure, and our focus is aimed at offering customers more efficient and scalable solutions, ‘ the two founders told Repubblica. Speaking of acquisitions, the $60 million round also allowed Shop Circle to acquire Aiden, an AI-based sales software already used by global brands such as LG and Prenatal. A useful move to add services and tools to all companies, from small and medium enterprises to large industrial groups.
