Magento has been given $250 million from Hillhouse Capital as an investment sum to assist its plans for global expansion in sales, marketing, new production innovation, client support and acquiring new companies in the future.
The investment company, which has a reputation for making longer term investments in the China market as well as other global locations, will work with Magenta and Permira Funds (a major company stakeholder) to help Magenta achieve its future plans. Hillhouse also assist two other Chinese internet companies, Baidu and Tencent.
According to Magento’s CEO of Commerce, Mark Lavelle, the company has transitioned to become the biggest e-commerce platform globally, with a more than 250,000 client base generating in excess of $50 billion “annual merchandise volume”.
“In addition to the capital that will accelerate our growth, this investment brings the experience and long-term perspective of another marquee investor,” Lavelle said. “Both Hillhouse and Permira see that in nearly every industry, there is a major secular acceleration taking place driving demand for digital commerce technology. Yet clients have few options when looking for a company whose sole focus is on digitizing the customer experience across all channels where commercial transactions occur. Magento’s goal is to be the leading company for the next generation of commerce innovators, and it is a privilege to have two prominent technology investors backing our vision.”
Lei Zhang, Hillhouse Chairman and CEO, commented:
“We see tremendous growth opportunities for Magento globally and specifically in Asia. We are excited to be partnering with such an exceptional management team to continue to build and grow the business over the long-term.”
Magento bought RJMetrics in the summer of 2016. The acquisition of the cloud-based analytics firm enhances Magenta’s offering – bringing a data and insights solution to its stage.
Magento has moved direction in terms of business strategy with the launch of PaaS Magento Commerce in April 2016. The company is re-directing itself from an online- sales provider, to one that provides a wider range of commercial SaaS services based on its Commerce Cloud platform. This is partly attributable to allowing companies that utilise Magento Enterprise Edition to apply Magento Commerce Order Management and Magento Analytics (derived after the RJMetrics acquisition).