An Atlanta-based e-tailer that helps people sign up to use its e‑commerce products will get a $500 million investment from a private equity firm.
The Atlanta- based company, CircleUp, said Thursday it has secured the capital needed to grow its user base, including employees and small customers, by 30% to 40% as it expands to new markets.
The firm said it will use CircleUp’s technology to make it easier for customers to sign up, and help it better compete in a new world of online commerce.
The company is also getting the help of Google Ventures, which is investing in CircleUp to help with marketing and digital operations, the firm said.
It is not immediately clear whether CircleUp plans to add to its staff or expand its business in new markets, but it will have to add more employees and customers to meet the growth target, CircleUP CEO Chris McCollum said.
CircleUp launched in April 2014, shortly after the company’s founders were hired from PayPal.
It has a mobile app that lets people sign-up for online shopping, an e-store that sells goods, and a virtual-reality platform that lets users interact with shopping experiences.
Circumstances were good at first for CircleUp because the e-shop was growing fast, said McCollums wife, Lisa McCollms, and she was able to convince investors that the company would succeed in its goal to grow revenue by more than 10%.
Circle Up was the first e-retailer to be acquired by a large e-business, but the deal that sent it to Google Ventures was a big deal.
Google is also looking to help other small companies grow, as well as create a new e-fintech space.
Google Ventures invested $300 million in the company in July, and it is working to help more e-services companies succeed in this new space.
“The CircleUp team is one of the very best teams in the world,” said John Boulware, an analyst at Jefferies LLC.
“They are building a strong business and doing it with a high degree of speed and agility.
They are able to deliver high value to customers, and they are getting rewarded for their hard work.
It is a very exciting time for ecommerce.”
CircleUP is not the only e-company to make acquisitions.
In May, Circle up bought the personal-health-care company MyHealth.
In April, Circle announced it would acquire mobile app developer Zendesk, as it continues to expand its ecommerce presence.