Nosto Raises $16M as It Launches Site Search Within Its Commerce Experience Platform (CXP)
Nosto, the world’s leading Trading Experience Platform (CXP), has announced the close of its latest funding round of US$16 million, from the Growth Equity team of Mandatum Asset Management (MAM GE). . Already backed by OpenOcean, Wellington Partners, Eurazeo and Tesi among others, MAM GE’s latest cycle accelerates Nosto’s mission to make every impression relevant.
Since its founding in 2011, Nosto’s technology has helped more than 2,500 global retail brands such as Paul Smith, Kylie Cosmetics, Muji, Dermalogica, Centric Brands and Princess Polly create the ultimate online experience for consumers. shopping.
And the demand for such technology will only increase. According to data presented by Shopify¹, global e-commerce sales are expected to total $6.3 trillion by 2023. In North America alone, e-commerce sales in 2022 are estimated at $905 billion, growing to $1.1 trillion by 2023, yielding a compound annual growth rate (CAGR) of 44 %. Among these sellers, those using the Shopify platform experienced even faster GMV growth of 420%, from $1.1 billion in 2018 to $6 billion in 2022, bringing the pace to compound annual growth of 51% over a 4-year period.
“Merchants using Nosto are growing quickly, and merchants using Nosto on the Shopify platform are growing quicker still. This investment will help us continue scaling our Commerce Experience Platform, supporting brands in their own growth ambitions. This fundraise represents a shared vision for the opportunities that lie ahead in the e-commerce space for both Nosto and our merchants,”
“Since launching site search natively within our CXP, we’re uniquely positioned to disrupt the product discovery space. Not only are we leveraging recent developments in semantic search and natural language processing, but we’re also unlocking valuable search data that is often siloed within point solutions. Giving brands the power to take search data and use it to inform their personalization and merchandising strategies across the rest of the online experience, and vice versa, all within a single platform, means that data can be harnessed from anywhere and actioned everywhere. This creates a completely personalized experience for shoppers and a high-performing online store for brands.”
Jim Lofgren, CEO, Nosto.
MAM GE targets high-growth Nordic companies with proven business models and established ambitious teams. As an active minority shareholder, MAM GE works closely with management to drive growth and internationalization. At the close of this latest transaction, Nosto appointed MAM GE’s Rami Salonen as the newest member of the Board of Directors.
“We are excited to partner with Nosto and accelerate their international operations,”
“The Nosto team has already shown that a customer-focused business model, enabled by strategic partnerships, truly creates sustainable value not only from the business perspective but also for the end-users. We hope to support the team in its growth journey and enable the company to keep leading the way with best-in-class products that are praised by its customers.”
Rami Salonen, Investment Manager, Mandatum Asset Management.
Website research is an important part of Nosto’s mission to make every right impression. According to Nosto’s Product Discovery Study conducted in January of this year, 69% of all shoppers directly visit the search bar on a brand’s website, showing that product discovery begins and ends. ends with a search. If a site’s search results aren’t good, the entire customer experience with that brand will be poor:
Nosto’s research shows that 80% of shoppers leave e-commerce sites due to poor site searches and irrelevant results.
Their research also revealed that 95% of brands raise major issues with their current search technology, but 85% said they plan to continue investing in this area, emphasizing the importance of this search in the e-commerce technology stack.
“One of the key areas of current investments is our e-commerce search solution that utilizes Nosto’s predictive intelligence and advanced merchandising tooling, allowing merchants to make every impression more relevant across the entire on-site experience. There’s an urgent market need for intelligent and personalized search technology for e-commerce that allows merchants to meet their business goals,”
“This raise allows us to accelerate our innovation and continue developing our Commerce Experience Platform. It also empowers us to continue making more acquisitions. Nosto is a profitable company, and we have made three acquisitions in 18 months. We continue to look for attractive acquisition targets to expand both market share and product offering.”
Juha Valvanne, Founder and Chief Corporate Development Officer, Nosto.