Swap Commerce secured $40 million in Series B funding.
The e-commerce operating system connects that brands’ operations on one platform said the capital raised will allow Swap to “deepen its dominance” in the United Kingdom while accelerating expansion into the United States and European Union. The funding round—led by Iconiq Growth with participation from Cherry Ventures, QED Investors, Portfolio Ventures and 900 Capital—also opens new regions, such as Australia and Canada, as well as new verticals, such as beauty, consumer technology and home goods.
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“We are going to make the U.S. a priority for us; we’ve signed a lease in New York, and we are definitely being aggressive about how we approach the U.S. as a market and how it relates to the product,” Juan Pellerano-Rendón, Swap’s chief marketing officer, told Sourcing Journal. “We founded this business in the midst of Brexit, and that has allowed us to go really deep into cross border to figure out [that] these UK retailers need our support in meaningful ways, and that’s allowed us to figure out that cross border is going to be a place where we go a lot deeper in terms of what we’re doing.”
Internally speaking, the capital will help Swap grow its team and build out new products, including Swap Inventory. This offering “connects the dots” across Swap’s products and the merchant journey to provide “sophisticated pricing modeling and smart AI-driven recommendations around restocking and replenishment,” the Pangaia partner said.
“From the beginning, we’ve set out to create a new category that is a platform-level solution across all of a brand’s operations,” said Sam Atkinson, co-founder and CEO of Swap. “This funding cements us as the only e-commerce operating system that can enable inventory solutions, cross-border growth, returns management, and shipping and logistics in a way genuinely tailored to a brand’s needs.”
On that note, Swap Inventory also offers accurate forecasting of the market embedded in operations. This includes managing stock and tracking inventory as well as access to AI insights and recommendations as well as AI-powered trend data and historical data analysis. By connecting each key operation in the merchant journey, Swap said, the platform leverages previously unattainable data and analytics to “unlock” value and drive growth. As a derivative of Swap’s integrated product strategy, brands can swap their multiple-point solutions with this singular operating system.
“Thinking about from the minute that you’re putting stock in your warehouse or thinking about your next product—to the point where it’s delivered on your customer’s doorstep and back—we handle every step in that operations model,” Pellerano-Rendon said regarding Swap Inventory. “And it’s connecting all your logistics flows in a way that’s seamless for the brand, and really being that true, back-end to your Shopify front-end, where I think inventory, for us, was the missing piece to be able to do that.”
As these pain points for e-com players continue to mushroom, the Frankie Shop supplier wants to position itself as the leading solution for those seeking a consolidated, integrated platform to “streamline fragmented operations” and centralize data.
To that end, Swap said this funding comes at a “critical juncture” for e-commerce brands, considering the increasingly complex issues global trade faces amidst unstable geopolitical factors, tariffs and regulations.
“We have been impressed by Swap’s product focus and velocity. As cross-border commerce becomes increasingly complex, we have seen Swap emerge as a valuable partner for direct-to-consumer brands by unifying fragmented global e-commerce operations into a cohesive platform,” said Seth Pierrepont, general partner at Iconiq Growth. “We believe the company is well positioned to be a leading software enabler of global e-commerce and are excited to support them on this journey.”
