Fabric, a Seattle startup that helps mid-size brands sell their products online, has raised $100 million in fresh capital. The Series B was led by Stripes, and comes at a time when the ongoing pandemic has placed renewed reliance on e-commerce capabilities.
“Growing commerce brands are in desperate need of better technology to meet modern customer expectations in an almost impossibly dynamic marketplace,” Stripes partner Ron Shah said in a statement. “We believe [Fabric’s] team, technology and trajectory position them to become one of the next great e-commerce platforms of our time as the industry undergoes a once-in-a-generation modernization.”
Indeed, global e-commerce is expected to surpass $5 trillion by the end of this year — a significant jump from the $3.5 trillion spent in 2019. Meanwhile, B2B e-commerce is projected to reach nearly $21 trillion by 2027, a whopping 70 percent increase from 2019. Much of this growth can be claimed by industry giant Amazon, whose market capitalization has reached nearly $2 trillion alone. At the same time, many smaller retailers and B2B brands are struggling to meet their customers’ increasingly high e-commerce demands, constrained by what Fabric CEO Faisal Masud calls a “crumbling” infrastructure.
“SMB commerce platforms don’t serve the needs of mid-size, growing e-commerce businesses who win or lose on brand experience,” Masud said in a statement. “[Fabric is] offering technology and guidance that was previously only available to the largest e-commerce organizations.”
Fabric is described as “headless” or “modular,” meaning businesses can use the platform’s entire stack or pick and choose from its suite of commerce tools for specific needs, like product information or order management. This model allows brands to modernize their e-commerce platforms quickly and cost-effectively. Essentially, Fabric is designed for businesses that have outgrown the software designed for entrepreneurs and are working to compete with goliaths like Amazon.
And so far, Fabric appears to be doing quite well. This is the company’s second round of funding in just five months — its $43 million Series A closed in February. Since then, the company says its year-over-year revenue has grown 800 percent, and it has added major brands like GNC and Barkbox to its growing list of clients.
This Series B brings Fabric’s total valuation to $850 million, sources told Bloomberg, meaning it is on the verge of reaching unicorn status. In a recent LinkedIn post, Fabric said the money will be used to fuel its global expansion, with Bloomberg reporting that the company has its eyes set on Asia. Fabric is also hiring, with more than a dozen open tech positions at its Bellevue headquarters.