Oroan open source e-commerce platform co-created by Magento’s co-founder and former CTO, today announced it has raised $13 million in a strategic growth round.
Founded in 2012, Los Angeles-based Oro’s platform forms a range of applications including OroCommerceits flagship B2B e-commerce platform for building storefronts and marketplaces; Oro Marketplace, an end-to-end management platform specifically for marketplace businesses; called a Customer Relationship Management Platform (CRM). OroCRM; and Oro platforma development platform for fast web apps.
While similar players in the space like Shopify and Magento focus largely (but not exclusively) on B2C brands, Oro focuses its e-commerce infrastructure entirely on B2B companies such as manufacturers, suppliers, distributors, and wholesalers. This, according to CEO and co-founder of Oro Yoav Kutneris more complex to run than B2C.
“B2B ecommerce has very different dynamics than B2C commerce — instead of large-scale transactional buying with a varying cast of consumers, B2B brands focus on high-value deals with a smaller pool of loyal customers,” Kutner told TechCrunch. “As such, B2B digital commerce solutions should be able to address the complex needs of corporate buyers, with bulk orders, split shipments, bespoke quotes and many other capabilities, while also supporting rich, ongoing customer engagement and personalized offerings.”
But on top of that, B2B buyers now expect the kind of usability they’ve become accustomed to with B2C platforms they might be using elsewhere in their day-to-day lives, meaning B2B sellers had to up their game.
“One of the key challenges is delivering robust and feature-rich enterprise selling tools, while also delivering a consumer-level purchasing experience, with streamlined and streamlined discovery, purchasing and tracking options,” added Kutner.
It gets even more complicated when you consider that a single seller can have completely different and distinct markets for their goods. Kutner cited an example of a glassware manufacturer that may need to introduce separate sales portals for the medical and catering industries, for example. This may also mean that the merchant has to set up different pricing structures for each industry, something Oro makes possible through a so-called “dynamic pricing engine” that automatically calculates new prices or discounts based on preset rules and business logic defined by the merchant.
“Coordinating those behind-the-scenes operations poses special challenges for B2B companies and e-commerce providers,” said Kutner.
The story so far
Along with co-founders Jary Carter and Dima Soroka, Kutner launched Oro just over a decade ago, shortly after leaving Magento, which he sold to eBay for about $180 million last year. Adobe eventually bought Magento for $1.68 billion in 2018 and renamed Adobe Commerce.
Oro is similar to Magento in several respects, perhaps the most important of which is its open source foundations that offer more flexibility for things like hosting and deployment, while also allowing businesses to tweak and adapt things to suit their own use cases.
This means companies can host Oro on their own infrastructure if they wish, or deploy it in any combination of on-premises or public and private clouds.
“Users can also easily and quickly switch between deployment models, such as if a customer needs to scale quickly on-premises and leverage private or public cloud infrastructure in response to a spike in web traffic,” said Kutner. “And our hybrid approach also gives customers control over their data: if they want to run most workloads in the cloud, but want to use their own secure data center, for example, Oro makes that very possible. There really is no limit to the ways customers can use our hosting options to meet their needs.
So far, Oro had raised $12 million back in 2016and with another $13 million in the bank, Kutner said the company plans to “shake up the digital commerce industry for many years to come.”
Oro’s latest cash injection was led by Zubr Capital, with participation from existing investor Highland Europe.