Logicbroker to use investment to expand its category leadership in global drop ship and marketplace automation
Logicbroker, a cloud-based eCommerce platform to offer full drop ship and marketplace functionality to suppliers, retailers, brands, and 3PLs, today announced that it secured more than $135 million in investment from K1 Investment Management (“K1”). K1 is a leading investment firm focused on high-growth enterprise software companies globally.
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“Partnering with K1, a team that shares our passion for modernizing digital commerce, allows Logicbroker to scale globally,” said Peyman Zamani, CEO at Logicbroker. “With K1, we will continue to deliver the latest technology and solutions to our customers and help them succeed wherever they choose to sell and however they choose to ship.”
Logicbroker empowers customers to sell more products, reach more customers and pivot quickly to maintain an edge in the evolving eCommerce industry. Through Logicbroker, global brands such as Mars Wrigley and Samsung connect to retailers including Amazon, Walmart, and Walgreens. More than 4,000 companies rely on Logicbroker to manage more than $5 billion in gross merchandise value annually.
“Walgreens moved to Logicbroker due to its modern technology, ability to support enterprise compliance requirements, and the fact that our suppliers would not have to incur any costs to participate in the Walgreens drop ship program,” stated Jennifer Raber, Director of Retail Digital Business Enablement at Walgreens. “In our research, one of Logicbroker’s other clients gave us the feedback that Logicbroker was a partner, not just a service provider. I could not agree more; they have a strong ‘we are one team’ mentality and are responsive and supportive. Our suppliers have also given strong feedback on the support they receive from Logicbroker. I look forward to what the future brings.”
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This partnership comes at a time when omnichannel customer engagement plays a critical part in companies’ success. The Aberdeen Group recently found that companies with strong omnichannel customer engagement retain on average 89% of their customers, while those with weak engagement retain only 33%. Drop shipping is a critical component of omnichannel growth, with drop shipping revenues expected to top $534 billion by 2025. Logicbroker’s mission has always been to deliver next-level drop ship automation, and it has also revolutionized marketplace selling through its curated marketplace solution.
“Considering the tremendous growth in global eCommerce, K1 sought to invest in a category-leading software platform that was fueling digital transformation in the industry,” said Simon Yu, Senior Vice President at K1. “Logicbroker’s management team is incredibly passionate and we were impressed by rave reviews from every customer and partner we spoke with. K1 looks forward to supporting Peyman and the Logicbroker team in continuing their industry leadership in eCommerce automation.”