Spree Commerce raises $5M for its open-source storefront platform

By Nathaniel Mott , written on February 25, 2014

From The News Desk

Spree Commerce today announced that it has raised $5 million from Thrive Capital, Red Swan Ventures, the Vegas Tech Fund, and previous investors. [The Vegas Tech Fund and its founding partner, Tony Hsieh, are Pando investors.] The company plans to use the funding, which follows a $1.5 million seed round, to continue developing its e-commerce platform.

That platform includes an open-source tool said to power 45,000 online storefronts and the Spree Commerce Hub, a paid service that manages the store's back-end infrastructure, from accounting tools to order fulfillment software and enterprise resource planning (ERP) suites.

"Our storefront customers often struggle with this area," says Spree Commerce CEO Sean Schofield. "This lets developers focus on the shiny front-end stuff and making a good experience for the customer while we make sure everything else happens like it's supposed to."

The service works with a variety of storefronts, including the eBay-owned Magento and Spree Commerce's own open-source tool. Schofield says that the product can also work with other services. "Basically, we have a storefront neutral way to push data to this e-commerce hub," he says. "So we can manage this for everybody, not just these open-source stores."

The announcement comes just a few days before the Spree Commerce developer conference, which invites contributors to the open-source tool to meet in New York and discover how other developers, storefront managers, and Spree Commerce itself are using the platform.

Schofield says that the funding will allow Spree Commerce to hire a full-time support team for the open-source tool, which is currently being developed by over 500 contributors. Besides that, the company plans to continue developing the Spree Commerce Hub and continue to complement the open-source platform with paid products.