Companies experiencing growth like to acquire other companies to better there chances of, well, more growth. It is no different for Shopify. The B2B commerce provider has now acquired Handshake, a mobile commerce startup from New York offering a commerce platform for businesses selling wholesale goods.
„Handshake is now a part of Shopify“, ran a short statement made by Shopify. They went on to say: „We consider acquisitions in the normal course of business as we focus on making commerce better for everyone.“
Techcrunch also said that Shopify hasn't disclosed the amount required to acquire Handshake, but a source stated it was less than $100 million.
It seems the acquisition was announced to the Handshake team earlier this month. They are operating as a part of Shopify's extended service tier, Shopify Plus, which is headed by David Moellenkamp.
Even Handshake's LinkedIn indicates that they now belong to Shopify, and Glen Coates, founder of Handshake, is now the director of product at Shopify Plus.
According to PitchBook, Handshake had raised about $23.5 million, and was valued at just under $54 million in its last round. Boldstart Ventures, Emergence Capital, Soft Tech VC, Point Nine and others were among the investors involved.
Shopify is targeting a part of the e-commerce market where brands and retailers sell items wholesale. It is definitely big business. Recently, a report found that B2B e-commerce sales in the US alone were over $1 trillion for the first time in 2018.
Just like with consumer-focused sales, platforms (like Handshake's) offer retailers the ability to handle these sales directly. This cuts out working with a third-party marketplace, where the retailer also needs to pay commission to the third party and play by its rules.
Handshake's customers include Bugaboo, Williams-Sonoma and Roland.
This latest move by Shopify shows how it is also growing and expanding its scope. The bottom line is, the move puts them more in line with marketplaces like Alibaba and Amazon.