- Mirakl, a software company that helps retailers expand their online assortments by integrating merchandise from third-party sellers, has raised $300 million in new financing from a group of investors, according to a press release.
- The company is looking to strengthen an international business that works with retailers looking to draw and retain customers by offering products they would otherwise have to purchase elsewhere.
- The new capital pushes the amount Mirakl has raised to $400 million, and investors now value the company at more than $1.5 billion, the company said.
Mirakl, which says it has more than 300 customers around the world, hopes to strengthen its position as a supplier of systems that retailers use to make products from other sellers available to customers — an approach sometimes referred to as “endless aisles.”
In August, Mirakl signed a deal with Kroger to help the supermarket chain expand its Kroger Ship e-commerce site with a selection of products not available in its brick-and-mortar locations. The expansion initially includes more than 50,000 items from third-party sellers, including specialty and organic foods and general merchandise. Among the services Mirakl is supplying Kroger is the ability to vet third-party sellers before allowing them to sell products in its online stores.
Mirakl has launched marketplaces with other grocery companies, including United Natural Foods, Inc., and Carrefour. The firm supported Albertsons' online marketplace, which launched in 2018 offering goods from small specialty manufacturers. That site is not currently operational, but says on its main page that customers should "stay tuned for a new and improved Marketplace experience in the near future."
Mirakl has grown by tapping into the pressure retailers are feeling from e-commerce specialists like Amazon, which let people choose from a seemingly boundless array of products sold by third-party merchants on a single website or app. Large retailers such as Walmart and Target, which have long occupied prime positions in shopping centers, have built online marketplaces that also carry items from outside sellers.
Mirakl is staking its future on its ability to convince retailers that opening their virtual doors to external sellers is in their best interest.
“Sometimes there’s a lot of fears around the idea that if, as a retailer, you start opening the doors to third parties, you’re taking a lot of risks. But history has proven that it’s kind of the contrary, and that ... your customers appreciate this extended offering,” Adrien Nussenbaum, a co-founder of Mirakl and its U.S CEO, said in an interview.
Mirakl said it would use the new funds to improve its technology and expand its employee base. The money came from investors including Permira, which led the funding round, 83North, Bain Capital Ventures, Elaia Partners and Felix Capital.
The company plans to hire more than 300 engineers over the next three years to work on a variety of projects, including adding features to its software to expand its appeal to merchants operating in the business-to-consumer and business-to-business sectors. Mirakl also plans to expand its sales force.
In addition, the software provider intends to step up the role artificial intelligence and automation play in its tools with an eye toward accelerating time to market and boosting security for its clients, which outside of grocery include Best Buy and Singapore’s Changi Airport.
Jeff Wells contributed reporting to this story.