Marketing

On course for expansion with $ 75 million in funding – eCommerce Magazin

The pandemic-induced digitization is bringing rapid growth to e-commerce – and is pushing both smaller and rapidly growing online retailers to their limits. Because they often work through orders, inventory management, material flow or stock levels in a laborious and time-consuming manner with the help of Word or Excel. “We were faced with exactly this problem in 2008 with our original online shop. So we started developing our own software, ”recalls Benedikt Sauter, founder and managing director of xentral.

Xentral: A kind of SAP solution for small and medium-sized companies

The result was a lean, user-friendly and cost-effective ERP solution with which start-ups and SMEs can digitize and automate all business processes. This includes the areas of e-commerce, procurement, order and warehouse management, production, packaging, fulfillment and accounting, being able to digitize and automate. In addition, the lean cloud software, which has over 1,000 modules and interfaces to all common services, bundles the business processes in one place.

The solution took off because in the world of complex, inflexible and expensive legacy systems it fills precisely the void that was causing problems for small and medium-sized retailers and manufacturers. “SAP supplies corporations. Our solution is suitable for smaller companies, ”explains Sauter. “We take care of your complex problems and develop a simple and flexible solution. This is very slim when it is introduced. An entrepreneur who decides on Friday that he needs a flexible ERP should be able to implement and configure xentral on the weekend and hand it over to his team on Monday minimize quickly and maximize process efficiency.

xentral
Claudia and Benedikt Sauter are founders and managing directors of xentral. (Image: xentral)

IT venture capitalists invest in xentral

It is precisely this consistent process automation and the enthusiastic customer base that prompted the venture capitalists Tiger Global and Meritech to invest 75 million US dollars in the Series B financing round in the Augsburg company and in the existing round with Sequoia Capital , Visionaries Club and Freigeist. According to Sauter, the funds will flow into further product development and the expansion of the team: “On the product side, user-friendliness is to be further improved, the app store is to be expanded, the existing ecosystem is to be strengthened and new partners are to be won.” The latest product improvements include new e-commerce integrations , more intuitive self-onboarding, the expansion of the English product version, and advances in customer support and experience.

The investments create the conditions for further expansion in a promising market. Hundreds of thousands of smaller companies are already using Amazon, eBay, Shopify or other platforms to sell online. Of the E-commerce sector is growing continues to grow strongly and is expected to exceed $ 800 billion in Europe alone in 2021. Becomes global the cloud-based ERP market Expected to grow to $ 32 billion by 2023.

Tailwind from a strong team

Since 2020, xentral has tripled the number of customers, the e-commerce boom of the pandemic is making a significant contribution. In order to be well positioned for the next growth phase, xentral has expanded its team from 50 to more than 120 employees. In addition, branches across Europe, including Amsterdam, were opened and more managers were brought on board. In order to be able to keep pace with the steadily growing customer demand, the start-up now also wants to expand its international team. The upcoming product launch in Great Britain can also be initiated in this way. John Curtius, partner at the investor Tiger Global, is certain: “xentral is growing with its innovative product and will in future not only serve customers in Europe, but worldwide.”

xentral is a ERP cloud softwarethat bundles business processes in one place for start-ups and SMEs – from e-commerce to warehousing and production to fulfillment and accounting. With more than 1,000 functions and interfaces to all common tech tools, xentral ERP supports you in automating the processes. xentral relieves the user of the hurdle of daily repetitive tasks. The solution thus creates the prerequisites for companies to be able to grow safely and sustainably. (sg)

Also read: Air up: How success came through networking and the right ERP system