Following the pandemic, the e-commerce sector experienced a significant surge, leading to a shift of shops to online platforms. However, this transition resulted in many merchants having to manage dozens of separate app providers to handle various aspects of their business, including supply chains, inventory, and marketing. The founders of Shop Circle recognized this challenge and either developed or acquired numerous apps to address these needs. As a result, the company has successfully raised $60 million in a Series B funding round, led by Nextalia Ventures, to further scale its strategy.

This funding has also enabled Shop Circle to complete the acquisition of Aiden, an AI-powered guided-selling software utilized by prominent e-commerce companies such as LG, Prenatal, and Intersport, among others.

Shop Circle reports a 110% year-on-year revenue growth, which contributed to its ability to secure funding. The company’s focus on commerce-centric products, driven by the increasing power of generative AI integration, was also a key factor. Notably, Shop Circle has been profitable for two consecutive years.

According to CEO and co-founder Luca Cartechini, “Our primary solutions include AI-driven product discovery, primarily for commerce, up-selling, review management, inventory management, and the key strength lies in the fact that all the software is integrated under one unified Shop Circle platform.”

When asked about competitors, Cartechini stated, “We have several competitors in each category… However, none of them offer all the products under one platform.”

A significant factor in Shop Circle’s success is its deep integration with Shopify: “Shopify is a partner for us, and we’re the largest provider of solutions in the Shopify app store, essentially the App Store of Shopify,” Cartechini explained.

Francesco Canzonieri, CEO of Nextalia, commented, “Shop Circle stands out in the industry with its innovative approach to delivering a unified B2B software suite.”

Additional participants in this funding round included Endeavor Catalyst, as well as existing investors such as NFX, QED Investors, 645 Ventures, 3VC, and i80 Group.

This latest fundraising follows a $120 million raise in 2023, led by 645 Ventures and 3VC.