Supply chain software company Convictional on Thursday (Feb. 17) announced it has wrapped up a $40 million Series B fundraising round.
The company plans to use the funding to accelerate its product innovation, expand its sales and marketing efforts and broaden the reach of its automated business-to-business (B2B) trade offering.
YC Continuity led Convictional’s Series B funding effort and YC Continuity Managing Director Ali Rowghani is joining Convictional’s board as part of its investment. All of Convinctional’s existing major investors, including Lachy Groom and FundersClub, participated in the Series B round.
“Convictional is modernizing B2B trade by making it drastically easier for retailers and brands to integrate,” Rowghani in the press release. “Drop-shipping is a $100B+ market in the U.S. alone — and that is only a fraction of the overall wholesale opportunity they can serve with time.
“What is most exciting is that Convictional can help grow that opportunity even further: the easier it is for buyers and sellers to work together, the more products they can both sell.”
Convictional helps retailers onboard new brands with their dropshipp, marketplace and wholesale programs with one-click Shopify, WooCommerce and BigCommerce integrations and the ability to onboard legacy brands using CSV and EDI files.
The average supplier joins Convictional within 10 days and retailers can onboard 20-30 brands per quarter, according to the press release.
“Retailers value the speed and freedom that Convictional gives them to provide fresh and differentiated experiences to their customers,” said Convictional co-founder and CEO Roger Kirkness. “That can be as simple as partnering with brands to capitalize on the latest TikTok trend. EDI is retail’s biggest hidden problem; Convictional is the solution.”
Convictional also completed a Series A funding round led by Lachy Groom last year.
Related: Compared to Modern APIs, Legacy EDIs Seen as ‘Irrelevant’ and Slowing B2B Transactions
More than $5 trillion worth of B2B trade per year occurs using EDI, meaning companies are largely “bound to a standard that is basically, in many ways, no longer relevant and yet also unchangeable,” Kirkness told PYMNTS in a recent interview.
“As the way that companies have traded with each other has changed, [EDI] has not kept pace,” he said.
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