Shopify has raised a $100 million Series C funding round led by OMERS Ventures and Insight Venture Partners, with participation from existing investors including Bessemer Venture Partners, FirstMark Capital, Georgian Partners and Felicis Ventures. The funding will help the company, which has operated as an online retail platform since its founding in 2006, shift to a commerce platform that also supports merchants in offline settings (such as brick and mortar). The company has already developed a point-of-sale system and Square-like mobile card reader, both of which will help in its new efforts. Prior to the new investment, the company raised a $7 million Series A round in 2010 and a $15 million Series B in 2011.
Shopify has seen tremendous growth recently, increasing its operating facilities from 40,000 shops to over 80,000 in the past year, and doubling its sales from $750 million last year to over $1.5 billion this year. The commerce platform has also done some shopping of its own, making two acquisitions in the past two years. Shopify acquired mobile app and game studio Select Start Studios in February 2012, quickly expanding its mobile growth strategy, and then purchased design and user experience agency Jet Cooper in August 2013, expanding its operations in Toronto and strengthening its design and UX capabilities.
The recent $100 million round is the largest single venture capital financing for a retail-related Canadian company and is among the five largest VC rounds for a Canadian company in any industry, according to the PitchBook Platform. The largest completed VC deal in Canada belongs to HootSuite, a social media management platform that landed a $165 million Series B financing this past August—an investment that included two familiar names from Shopify’s recent deal (Insight Venture Partners and OMERS Ventures). To add some perspective, Shopify’s new funding accounts for nearly 10% of the total capital invested in Canada so far this year.