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Ecwid raises $5m Series B from iTech and Runa

0 28 May 2014

Russian e-commerce store creator Ecwid has raised a $5 million Series B round.

The round was led by iTech Capital, while Runa Capital (which previously invested $1.5 million in the project) also contributed. 

Ecwid is the most popular Facebook store-builder, with more than 300,000 monthly users. However, Facebook is just one of the platforms on which Ecwid clients can simultaneously operate online stores. It is precisely this flexibility that impressed iTech Capital managing partner Gleb Davidyuk:

“Ecwid is so popular because it is a true sell-anywhere storefront with universal integration on any online platform. This is a reason it has had stellar growth and profitability with a first round funding of just $1.5 million. Small and medium sized businesses are going to be the drivers of e-commerce growth over the next 5-10 years. There are millions of sites built with Wordpress, Wix, Squarespace, Weebly and Yola on which Ecwid can can embed a full-featured store in minutes.”

Ecwid founder and CEO Ruslan Fazlyev launched his first e-commerce builder, X-Cart, in 2000. While this PHP-platform for online storefronts proved successful in its own right, Fazlyev spotted a niche for an SaaS-based store-builder that allowed clients to operate stores across multiple platforms without changing their existing sites. 

“Ecwid was designed to be a game-changer, making it possible to add a fully-functioning store to any existing web site, while preserving its design. It is exciting to see this vision come to fruition, and with strong partners like iTech and Runa, we look forward to accelerating our growth and continuing to improve our product.”

While the company’s R&D team is based in Ulyanovsk, a city in Russia’s Volga Region, its global operations are coordinated from its US-office in California. Ecwid also has an American President, Jim O’Hara. He explained what the money will be spent on:

"Ecwid began as a way to let merchants sell from any website they prefer, without having to abandon their investment in an existing site or be locked into a dedicated e-commerce website.  We used our first funding round to deliver this choice and flexibility to small businesses, and also to bring them rich functionality for mobile and social commerce. 

This new round of funding allows us to help merchants converge their offline and online sales through our POS and mobile POS integration, so they can sell their products anywhere at any time, offline or online and from any device. We also will extend the rapid growth of our network of site-builder, CMS, hosting and payments partners globally.”

iTech Capital is a $120 million fund that typically invests up to $10 million in e-commerce related projects. Recent additions to its portfolio include automised SMS-service MFMSolutions, flight search engine AviaSales and ticket retailer Ticketland. 

Runa Capital is one of Russia’s best known funds. Its tech-dominated portfolio includes successful Russian projects like Parallels, Acronis, Jelastic and NginX, as well as foreign projects including DrChrono and CloudPartner.

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