Ecommerce software developing firm Volusion, just received $35 million in debt funding from Silicon Valley Bank.
Volusion was established in 1999, and mainly targets small to medium sized retailers by offering do-it-yourself Ecommerce platforms to take their businesses online. The debt funding is Volusion’s first outside funding, and according to CEO Clay Oliver will be used to target the enterprise market.
Volusion plans on gaining more enterprise clients with its newest product Mozu. Mozu is a platform built with “API-first architecture for customization and integration with other applications, and software.” Mozu’s pricing and fees will be based on usage and volume, and will be bundled with web and mobile support.
“With this funding, we are looking to launch and market our new enterprise platform, Mozu, while also further developing and enhancing the Volusion platform, which is built for the SMB market,” added a spokesperson for Volusion.
Introducing NextV - The Full Scope Solution To Building Your Next Virtual EventGo to article >>
When asked why to raise debt rather than seek funding, Oliver stated the debt funding will add value from the investors, without diluting Volusion’s shares. The funding based on debt and credit will also contribute to Mozu’s marketing and expansion, while preparing the company for a potential IPO in the coming year.
One of Volusion’s main competitors, Shopify, recently received a round of funding for the amount of $100 million.
Mozu is available right now, and beyond store building will offer tools for SEO, marketing, order management, and payment processing.