Back in June, we reported on Duda’s $50 million Series D round. The company intended to put the money to use in all the usual ways, hiring more developers to continue building out its platform, and bulking up its sales and marketing teams.
Duda CEO Itai Sadan also added this comment. “We definitely want to double down on eCommerce.”
Duda followed through on that promise this week with the acquisition of Snipcart, a headless commerce company founded in 2013 and based in Quebec. Snipcart’s promise is to “add a shopping cart to any website in minutes.” Deal terms were not disclosed.
Growing eCommerce Business
We spoke to Itai yesterday and asked him to explain why this acquisition is important. Duda, after all, has its own native eCommerce solution. So we wanted to know what gaps Duda sees Snipcart filling.
According to the deal announcement, “Duda will continue to offer its existing eCommerce solution, alongside Snipcart. The existing e-commerce solution has a strong and loyal following, used by many of Duda’s customers to add website buying experiences and will stay in place for customers that prefer to keep using it. In addition, Duda will continue to support it and expand on its capabilities.”
Itai reiterated how important eCommerce has become for Duda, in particular in the pandemic era. “We’ve seen a very significant increase in our own sales of eCommerce sites. And we saw 265% growth in the number of eCommerce stores on the Duda platform last year. So one is, You know we’re seeing that we’ve been seeing the demand we’re benefiting from it and we wanted a stronger solution in this space,” Itai said.
Itai said the company faced a classic “build vs. buy” decision. It needed a more advanced eCommerce component, so it had to either create it or find a company that has already done so and put some of that that VC money to work. Given the pace of change in the website and eCommerce space, the ticking clock made the decision pretty straightforward.
“I think it probably would take at least two years to come up with something very initial, and it wouldn’t cover a fraction of the features that Snipcart has today,” Itai said. “And the market is here right now. So we’re seizing the opportunity. We’re also bringing in a team that’s been doing eCommerce for, six, seven years, and bringing that expertise into Duda.”
What’s So Special About Snipcart?
We asked Itai to explain what Snipcart does that’s so hard to replicate.
He said Snipcart’s “flexible and modular” eCommerce solution was also attractive to Duda. Duda works with a number of SaaS parters like TripAdvisor, Folio, and ServiceTitan. Each of these companies manages a large inventory of websites. Snipcart allows Duda to make this inventory of individual sites instantly “shoppable.” Remember, Snipcart’s promise is to “add a shopping cart to any website in minutes.” What these partners do not want is to manage a separate inventory of Shopify or BigCommerce stores for their customers, Itai said.
“That’s exactly the flexibility that we’re now enabling for these SaaS platforms,” Itai said. “You bring in the parts that you have, which is the back-office tools and inventory of whatever products or services your customers had. And we’ll put it on the web and make its shoppable.”
Bottom Line: Incremental Acquisition or Game Changer?
Itai said they are not focused on any specific additional acquisitions right now. But he says he is always open to deals “if we find the right team and the right technology to supplement Duda.”
We asked him to put the Snipcart acquisition into perspective. Is this a tuck-in, a game-changer, or something in between? “It’s about building out an area that is the fastest-growing part of our business, eCommerce,” Itai said. “And doubling down on an area that we’re very bullish on.”