Vancouver-based e-commerce technology company Elastic Path announced this week that it has secured $43 million in investments from Canadian firms, as well as those south of the border.
The investment was led by Sageview Capital – a private investment firm – as well as with participation from current investors, Yaletown Partners and BDC Venture Capital.
“Sageview provides highly complementary strategic and industry knowledge to our investor base,” said Harry Chemko, CEO of Elastic Path. “We look forward to leveraging the firm’s domain expertise, resources and shared vision to support Elastic Path’s goals for product evolution and market expansion.”
The latest round of funding follows a period of record-breaking growth for the company, which includes new clients and partnerships.
In a release, the company said increased business momentum – including gaining more European customers – is spurring the investment.
Elastic Path has experienced a 120% increase in subscription revenues and for the third year in a row, has ranked highest in “ability to execute” and “completeness of vision,” in the Visionaries quadrant of Gartner’s 2018 Magic Quadrant for Digital Commerce.
“We are pleased to lead this important capital raise for Elastic Path,” said Ned Gilhuly, Co-Founder and Managing Partner, Sageview Capital. “We are convinced that Elastic Path has the technology for the future in a rapidly evolving market.”
Chemko noted that Sageview’s decision to “purchase a digital commerce system is one of the most difficult a company can make, since the future of the entire business hangs on its success.”
He added that the funding will be used to “significantly ramp-up research and development efforts to address the B2B market and continue innovating on our industry-leading architecture.”
As part of these ramped-up efforts, Elastic Path said it will be opening a new office in Toronto to attract developers and “aggressively hiring” new sales and marketing personnel.