Commerce platform Fabric has announced the closing of a $43 million Series A funding round led by Norwest Venture Partners with participation from Redpoint Ventures and Sierra Ventures.
The funding round comes just over three months after Fabric closed a $9.5 million seed round at the end of October. Total funding in the company is now $53.5 million, according to Crunchbase. Redpoint led the seed round.
Fabric is a headless — meaning separating the front-end design from the back-end infrastructure — commerce platform.
“Successful retail companies win today by differentiating their brand and delivering modern customer experiences,” said Faisal Masud, CEO at Fabric. “However, they are faced with inferior options: Either compromise on commerce platforms that weren’t built for their needs, or sell via Amazon and lose control of their brand and data. Fabric was built for growing D2C and B2B brands, and is run by industry veterans. We know what it takes to scale and want to end replatforming in e-commerce.”
Fabric offers an API-driven system that brands — both direct-to-consumer (D2C) and business-to-business (B2B) — can use to scale their e-commerce businesses. Fabric’s solutions include an experience manager, product information manager and order management system that can be onboarded within weeks, the company said. Users can use the entire suite or any individual system.
Fabric counts ABC Carpet & Home, GNC and Juicy Couture among its clients. Masud once ran global shipping at eBay and also has worked at AWS, Groupon, Staples and Google.
“E-commerce reached new heights in the past year and it’s not slowing down, but too many D2C and B2B brands don’t have the right technology to capture the opportunity,” said Scott Beechuk, partner at Norwest Venture Partners. “With Fabric’s headless commerce platform, retailers can effortlessly extend the immersive in-store shopping experience to the digital world.”
Tim Guleri, managing partner at Sierra Ventures, explained his interest in Fabric in a blog post.
“On the eve of this financing announcement, I was reflecting on the path Fabric took to get to this important milestone. There is no straight line to success, but if one keeps focus on the ‘True North,’ which is the vision that drives a company, good things will happen. Fabric has embraced the power of the ‘True North’ and has been putting one foot in front of the other and making forward progress. This blog catalogs that early journey,” he wrote.
Guleri added that even with a $3.9 trillion global market, many D2C and B2B brands are struggling to grow because their platforms are not designed for speed or agility like Amazon’s is.
“These outdated systems created an operational nightmare, requiring excessive time and money for retailers to deliver great customer experiences. In the mid-market, eCommerce innovation has slowed down. Innovators have been acquired by Salesforce, SAP, IBM and there has been no fresh, modular, cloud-first thinking in this space,” Guleri wrote.
The COVID-19 pandemic became a defining year for business, necessitating a switch to modern approaches. Guleri, who had been looking for an e-commerce platform to invest in since 2019, believes Fabric has that right approach.
In the past six months, Fabric has closed 12 new customers and increased annual recurring revenue 500% year-over-year, Guleri noted.
Fabric plans to use the new funding to expand its platform, accelerate retailer onboarding and improve workflow, and expand its staff.