Hardeep Singh
CommerceIQ has plans to start operations in India by 2022
CommerceIQ, a digital platform that helps businesses enter the e-commerce market, has raised $60 million in its Series C investment. Insight Partner, a Shopify supporter, led the investment, which also included Trinity Ventures, Shasta Ventures, and Madrona Venture Group.
2200 consumer brands, including Kellogg’s, Nestle, Colgate-Palmolive, and others, use California and Bengaluru-based e-commerce management platform to manage their e-commerce operations. Despite the fact that many of its clients have their own marketplaces and direct-to-customer (D2C) operations, they only account for a small part of their revenues.
As a result, CommerceIQ concentrates entirely on assisting them with sales through well-known third-party e-commerce platforms such as Amazon, Walmart, Shopify, and others, which can help them achieve greater results.
It connects and automates a variety of tasks, including sales, advertising, and supply chain operations, as well as driving large-scale automation throughout the e-commerce business.
Indirect e-commerce sales adopt a D2C strategy
“Indirect commerce [third-party e-commerce platform] accounts for the majority of e-commerce. You never buy toothpaste or diapers from Colgate.com, Huggies.com, or other such websites. You’re basically going to Amazon.com, Walmart.com, or Flipkart.com in India.
“Indirect e-commerce accounts for 85 per cent of overall e-commerce in the United States, whereas direct e-commerce accounts for only 15 per cent,” stated Guru Hariharan, CEO of CommerceIQ. CommerceIQ’s clients, he continued, utilize it as a data vault for all of the required data points in sales, marketing, supply chain, and other areas.
In terms of business, the company uses its machine learning algorithms to identify patterns, appropriate pricing, and anomalies. Hariharan continued, “We are essentially a machine that hooks into the Amazon and Walmart machines and promotes the growth of these businesses on these platforms.”
Customers rent out the company’s software, which generates revenue. It also claims that its software can help its customers increase their e-commerce sales by 40% and profitability by 20%. In comparison to indirect e-commerce competitors, Hariharan feels that D2C’s growth, which has accelerated over the previous year, would be limited.
What role does India play in CommerceIQ?
CommerceIQ was formed in 2012 and has raised about $100 million in three investment rounds so far. In 2014, it raised $12 million in its Series B round and $8.5 million in its Series A round. The majority of CommerceIQ’s activities are presently based in North America; but, with the new round of funding, the company plans to expand into European and Asian markets.
According to Prasoon Kumar, CommerceIQ’s vice president of engineering and head of India operations, the company is presently working on certain test projects in India and aims to start a comprehensive operation in the nation by 2022.
CommerceIQ’s development center in Bengaluru, Karnataka, India, is where all of these algorithms and software are created. Around 110 individuals work at the center, which focuses on engineering, analytics, data science, machine learning, and other topics. The Bengaluru office is also in charge of product development, customer service, and support.
In the following 18 months, a portion of the money will be utilized to increase the company’s staff in Bengaluru. “India is a critical and strategic hub for us. “We are taking a long position in India,” Hariharan remarked.
It also intends to grow its go-to-market through both organic and inorganic ways. It plans to expand its activities into overseas areas in order to increase sales. On the other hand, it intends to grow its product offerings as well as customer value through mergers and acquisitions (M&As).
SaurabhPokhriyal, global director of global digital commerce at Colgate-Palmolive, said that CommerceIQ’s integration with the company’s sales process has helped the company move away from manual processes and streamline its e-commerce operations, resulting in increased market share and profitability.
CommerceIQ probably have big plans to expands and start its operations in India. What are your thoughts about CommerceIQ? Definetly, many changes would occur in the meantime within CommerceIQ which will boost the growth tremendously.
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