ShopRunner, a US-based e-commerce services provider that counts e-commerce firm Alibaba among its investors, has secured $40m in a growth round that was led by venture capital firm August Capital.
August Capital invested $30m in the round, which followed a 2013 round that was reported by the Wall Street Journal to be $206m in size.
Shoprunner runs an online platform that sells goods on behalf of a network of more than 100 retailers including department stores Neiman Marcus and Saks Fifth Avenue and several luxury goods, fashion and apparel brands, offering customers free two-day shipping and free returns.
In addition to retailers, Shoprunner has also formed partnerships with payment services providers American Express and PayPal. The funding will go to expanding its retailer partner network as well as strategic acquisitions and a move to a larger head office in the company’s home city of Chicago.
Alibaba initially invested at least $75m in Shoprunner in the 2013 round, which valued the company at $600m. The deal also allowed e-commerce platform eBay, which acquired a stake when it bought Shoprunner’s then parent company GSI Commerce in 2011, to exit.
Michael Rubin, ShopRunner’s founder and chairman, said: “Since founding the company in 2010, I have always believed in ShopRunner’s potential to have tens of millions of members spending tens of billions of dollars in its network.
“Our business momentum combined with our strengthened balance sheet sets up to have an explosive 2019.”
