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Today, ecommerce accelerator Pattern announced its $225 million growth equity investment for its machine learning and AI-driven logistics.
This is not your grandma’s ecommerce. The old days of driving your ecommerce jalopy via targeted ads dependent on eye-catching clickbait graphics has become a rapidly expanding $6 trillion tech-driven global market. Organizations seeking to leverage a global marketplace often must hack together a variety of solutions for various digital channels. In the last year, aggregators like Thrasio, Perch, and Razer Group collectively raised more than $7.7 billion.
Pattern’s round is led by Knox Lane and includes full pro-rata participation from existing investors, bringing Pattern’s total pre-money valuation to $2 billion. “As ecommerce and digital marketplaces continue to rapidly evolve, we believe Pattern’s offerings will become increasingly attractive to prospective brand partners as they navigate the dynamic digital commerce landscape,” said Knox founding and managing partner John Bailey.
This investment will allow Pattern to further develop its machine learning technology and expand their global presence. Founded in 2013, Pattern has reported profits since its founding, and expects their revenue to surpass $1B in the next 12 months. Pattern boasts a 210% increase in employee headcount since 2018 with approximately 900 employees in 18 countries.
“We have strong conviction in Pattern’s comprehensive platform and global capabilities and look forward to working closely with the entire Pattern team to support their ongoing growth and leading global position,” Bailey said. Pattern is now Utah’s first female founded/co-founded unicorn, as well as one of the largest raises by an ecommerce accelerator.
“We’re thrilled that Knox Lane has joined our mission,” said Pattern Co-Founder and Chief Investment Officer Melanie Alder. “Their partnership and investment will allow us to further accelerate the technology and intelligence services that power our platform, while expanding our global offering.
As of this writing, Pattern’s clients — including Panasonic, Nestle, Pandora, Sorel, Black Diamond, Zebra, and Kong — are counting on its technology and services to produce results in more than 100 countries, on hundreds of global marketplaces (including Amazon, Walmart, Target, eBay, Google, Tmall, JD, and MercadoLibre), and other digital channels.
Brands that turn to ecommerce and marketplace acceleration platforms — with companies like Pattern, Spreetail, and Netrush — are looking to capture market share and maximize profits. What used to be a multi-platform field of many companies touting specialized categories is quickly growing into an enormous decentralized industry for warehouse and fulfillment, while each promotes its ecommerce acceleration platform.
And it might be the best possible way forward for brand recognition, online sales, and merchandise fulfillment. Allison Burch, national account manager at Paslode, a division of Illinois Tool Works, reported a 122% increase in Amazon revenue, saying that Pattern had been a huge factor in their online success. “Their reporting & breakdown of our biggest lost sales is nothing short of impressive.”
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