Turkish startup ikas attracts $20M for its e-commerce platform designed for small businesses
It's easy to assume the e-commerce ship has sailed when you consider we have giant outfits like Shopify, WooCommerce and Wix dominating the sector. But the opportunity for e-commerce platforms that cater to brands remain vast and fertile, since so many smaller businesses continue foraying into the internet in the wake of the pandemic.
Further evidence of this has surfaced in the form of one of the largest fundraises by a startup in Turkey, given that the average Series A usually comes in at below $15 million. E-commerce platform ikas has raised $20 million in a Series A funding round as it seeks to expand its operations into new markets in Europe. The company currently operates in Turkey and Germany, and says its platform simplifies store management for companies that want to have a digital presence.
The investment was led by the International Finance Corporation (IFC) fund, a venture arm of the World Bank Group.
ikas' co-founder and CEO Mustafa Namoğlu told TechCrunch that the company would be using the new funding for international expansion in Eastern Europe and the DaCH region.
“Most of Europe is predominantly neglected or underserved by those U.S.-based giants,” he said. “The global platforms lack customer service in local languages. It looks easy to start with, for example, a Shopify. But once you start, you need to add other plugins, and you may even need an agency to run it.”
Namoğlu said ikas can win customers against other platforms because it’s more of a "fire and forget" platform. “The first reason our merchants pick us over others is storefront speed, which gives them higher conversion rates. You get this out of the box, even if you pay us €30 per month. The second reason is customer service. Thirdly, we bundle the payments and the shipping labels into our core product, which means you don't need to go and negotiate with payment providers or shipping labels. You're immediately ready to go,” he said.
Namoğlu previously founded MUGO, a fashion distribution and retail company, and launched ikas in 2017 with co-founders Tugay Karaçay, Ömercan Çelikler and Umut Ozan Yildirim.
The IFC invests directly in companies as well as through PE and VC funds.
Also investing in ikas is Re-Pie Asset Management, which has grocery delivery startup Getir in its portfolio. The round saw participation from ikas' existing investor Revo Capital, best known as the first institutional investor in Getir, Param, Midas and Roamless.
