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Where’s all that money going?
Retailers and brands are investing for a post-pandemic world. Omnichannel priorities are at the top of the list: tech is digitizing the store and speeding up order fulfillment. And tools to make online shopping more fun are rising in importance.
Our State of Retail Tech Q1'21 Report lays out the details. Among the highlights:
- Mega-rounds had a mega-quarter. Retail tech saw 73 rounds of more than $100M in Q1’21, more than double the 33 in Q4’20. Delivery tech, online grocery platforms, and e-commerce infrastructure companies led the way.
Among the mega-round recipients were 6 members of our Retail Tech 100 list, which names the most innovative B2B retail tech companies in the world. They were delivery tech companies Lalamove and Glovo; e-commerce payments companies Klarna and Rapyd; text commerce vendor Attentive; and cashierless tech company Standard Cognition.
- Stores are in focus as shoppers return. In-store tech funding doubled in Q1’21 vs. Q4’20, to $2.2B. Retailers will look for tech to make their stores run more efficiently: they’re deploying more forms of cashierless checkout tech and using new mobile tools to manage tasks and employees.
- The frenzy around Amazon third-party brand incubators continues. Among those with deals this quarter were unicorn Thrasio, which raised a $750M Series C round, and India-based Powerhouse91, which raised a seed VC round. Powerhouse91 also works with brands on India-based marketplaces Flipkart and FirstCry. Meanwhile, Jungle Scout, which also buys and scales Amazon brands, acquired Downstream, an Amazon ad tech specialist.
- Online grocery is still hot. In particular, funding and deals for dark convenience store platforms that promise ultra-fast delivery hit a record high. Gorillas, based in Berlin, and Getir, based in Turkey, both became unicorns. (Both also claim they’ll have your order there in 10 minutes.)
What’s next? Reaching shoppers across platforms (stores, online, and elsewhere) will boost targeted marketing tech (and retailers’ own nascent ad platforms). Tools to make online shopping more engaging, including personalized search, virtual try-ons, and livestreaming, will be in high demand. And sustainability will be a priority across the entire value chain.
Want more? Check out the State of Retail Tech Q1’21 Report here — and watch for our Q2 preview coming in about a month.
Happy shopping,
Laura
Laura Kennedy
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