On the heels of the announcement of Wordpress webhost Automattic acquiring WooThemes, along with its WooCommerce plugin, The Globe and Mail is reporting that Shopify, another eCommerce platform, has increased the maximum share price for its upcoming IPO. According to a regulatory filing today, the Ottawa-based e-commerce platform is seeking to raise as much as $123.2 million (USD), with shares selling between $14-16 USD.
Previous reports had Shopify looking to raise $107.8 million (USD) from 7.7 million shares, sold between $12-14.
Shopify is a Canadian based company that recently passed $5 billion in total sales, with over 160,000 businesses using its software for their online business and eCommerce needs. Shopify generated annualized revenue of about $1,000 for each of its 162,261 merchants on the site as of March 31, the filing shows. Despite not showing a profit, the company did post $105-million in revenue last year, derived from subscriptions and services.
Compare this with WooThemes acquisition announcement by Automattic.
WooCommerce is said to have 7.2 % of the eCommerce platform market with 650,000 users. Although the amount was not disclosed, it has been stated that WooThemes has an eight figure income and healthy profit from WooCommerce add-ons and upcharges. Automattic acquired WooThemes with an eye on solidifying itself in the eCommerce platform market for 30 million dollars in cash and stock.
Maybe it’s just me but something about the preceding info doesn’t add up. Regardless of the apparent discrepancies.. or my lack of understanding, the market for eCommerce platforms will only continue heating up!