E-commerce software startup Tradeswell raises $15.5M, plans to hire

Tradeswell, the e-commerce tech startup where the former millennial media CEO Paul Palmieri joined as CEO earlier this year, raised $15.5 million in new funding, the company announced this week.

The Series A comes after the company launched its platform, which it describes as an e-commerce operating system for brands, in October. And that’s just six months after the Baltimore and San Francisco-based company raised a $3.3 million seed round that was leaked in July.

Like the seed round, the latest funding was led by a San Francisco-based investment firm Traffic light. Chevy Chase-based venture capital firm build capital also returned in this round to increase his investment in the business. New investors Allen & Company and The Emerson Group also joined this round.

The company’s software platform seeks to address the economics of e-commerce, which Palmieri says is a challenge both for brands that might be familiar in retail stores and for direct-to-consumer brands that seek to sell their products through digital marketplaces.

“In the case of traditional businesses, they sell products like crazy on Amazon, but were so unprepared to deal with last mile marketing and last mile delivery, that they signed up with facilitators siloed in a black box. As a result, they struggle to function within the context of their true unitary economy,” he said.

“DTC brands, on the other hand, are certain of their unit economics, but have no idea how to take advantage of the economy of scale,” Palmieri said, adding that it relates to financing, manufacturing and monitoring the many tools and channels of e-commerce.

The company’s platform reveals and automates the actions of these brands to make smarter, faster decisions. This helps to increase sales, margins and profits and therefore the whole business.

It does this by aggregating data across e-commerce channels, marketing platforms, logistics, sales, and finance functions. Then it surfaces information and automates some of the actions through AI. The idea is that it can provide the visibility of an entire business that will help drive growth and react to market movements.

The company has 150 brands across both categories on its platform, including the iconic Baltimore company McCormick and fair trade company Tony’s Chocolonely. He was working with a lot during the holiday season. Palmieri, who led Baltimore’s ad tech company Millennial Media when it went public in 2012, sees a big market in a $3 trillion industry that only grew during the pandemic. He also sees it as an area where software can play a big role. While there are more startups making software that deals with specific parts of the whole and service companies that help with strategy, Palmieri sees the need for a “brain”.

“Over time, as with any high-speed, high-volume industry that has been transformed by software, an agnostic algorithmic facilitator ends up helping the market know what to do – at the speed of the market,” he said. declared. “What Bloomberg done to revolutionize trading, which google made to smooth the flow of information, Tradeswell’s algorithmic trading platform will do the trick for e-commerce brands. Like floor crews on the NYSE today, e-commerce will still need a few fingers and some services, but it definitely needs a software brain.

After the funding, the company will continue to develop its technology, including investing more in artificial intelligence, quantitative trading and e-commerce integrations. It is also looking to recruit to bolster its team of 25 people in areas such as data science, engineering and sales. Currently, he has 20 open roles.

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