Marketplace-as-a-service pioneer Mirakl plans to invest at least £23.5 million in the UK market and create 40 new jobs within the next two years, the company has today announced. Despite Brexit, the French-headquartered business considers the UK to be of huge strategic importance to its global ambitions, and will be using its London hub to accelerate growth across Northern Europe.
During lockdown marketplace popularity surged amongst UK consumers – between March and June 2020 consumers were four times more likely to buy from an online marketplace than a retailers’ own website. With this investment Mirakl – which counts the likes of Carrefour, H&M Afound, Harvey Nichols, and Urban Outfitters amongst its customers – plans to help UK grocers, retailers, and manufacturers capitalise on marketplaces’ popularity to create valuable new revenue streams. On average, the company helps its clients to achieve an average of 15% increases in order sizes and 7% increases in in-store sales.
At a time when UK industry is undergoing severe disruption, and when retailers and manufacturers are facing significant revenue decline, creating new revenue streams will be critical to drive growth and support economic recovery. In the first half of 2020, during the COVID-19 crisis, Mirakl-powered marketplaces generated over £940 million ($1.2 billion) in GMV, representing a 111% year-over-year increase.
The announcement follows Mirakl securing £235 million ($300 million) of new funding, in a Series D round led by the UK’s Permira. This capital injection, which propelled the company to unicorn status with a £1.17 billion ($1.5 billion) valuation, is a testament to Mirakl’s platform-focused business model and disruptive technology. Central to Mirakl’s philosophy is the belief that platforms are the future of business. In recognition of the critical value that platform strategies deliver, traditional businesses & digital natives alike are investing in the platform model at unprecedented levels. Mirakl already counts 11 of the top 40 North American retailers and a growing bench of leading B2B organisations as customers globally.
“Demand for marketplaces is booming in the UK,” commented Mirakl general manager, Brendan Walsh. “However despite clear consumer appetite, many businesses have yet to adopt a platform model. With Mirakl’s expansion, we will make it easier than ever for British companies to launch and grow an enterprise marketplace at scale, capitalise on the platform opportunity and gain a competitive edge in today’s digital economy.”