cross border commerce company Area Raised $69 million in Series A led by Silversmith Capital Partners, to continue building its API that auto-classifies goods and calculates an accurate total access cost on international transactions.
St. George, Utah-based Zonos is classifying this round as a minority investment that also includes individual investor Eric Rea, CEO of Podium, and Aaron Schonard, co-founder and CEO of Pluralsight. Series A is the first external capital that Xenos established in 2009, founder and CEO Clint Reid told Nerdshala.
As Reid explained it, “total land cost” refers to the duties, taxes, import and shipping charges that someone from another country may pay when purchasing an item from the US, however, the exact amount of those charges for businesses. It is often difficult to ascertain the cost. .
global cross border e-commerce Estimated to exceed $400 billion in 2018, it is growing at twice the rate of domestic e-commerce. This is where Xonos comes in: The company’s APIs, apps and plugins simplify cross-border selling by providing the exact final price a consumer will pay for an item upon an international purchase. Businesses can choose which one or multiple shipping carriers they want to work with and even enable customers to choose at the time of purchase.
“Businesses can’t know all the laws of a country,” Reid said. “Our mission is to build trust in global trade. If you’re transparent, you bring trust. This was traditionally considered a shipping problem, but it’s actually a technical problem.”
As part of the investment, Todd McLean, Managing Partner at Silversmith Capital Partners, joined Zonos’ board of directors. One of the things that attracted McLean to the company was that Reid was building a company out of Silicon Valley and disrupting global trade far from any port.
He says that looking into international commerce, he found that people are being charged extra after they’ve already purchased the item, leading to poor customer experiences, especially when a merchant is trying to build brand loyalty.
Even if someone chooses not to buy the item due to the fees being too high, McLean believes the shopping experience will be different because pricing and shipping information was provided up front.
“Our due diligence said that Xonos is the only player that takes the data that’s out there and understands it,” McLean said. “Customers love it – we got the most impactful customer references because that demand is already there, and they are seeing more revenue and more loyalty from their customers because it just works.”
In fact, it’s common for companies to see sales increase 25% to 30% annually, Reid said. He further added that due to the fees associated with shipping, this does not always mean increased revenue for companies. It may have a slight drawback, but it can have a long lifespan with customers.
Going after venture capital at this time was important to Reid, which saw global trade becoming more complex as countries added new tax laws and stopped using other business rules. However, it wasn’t just about getting the money, but finding the right partner who believes the problem won’t be solved in the next five years, but that it will need to be around for the long haul, Reid said. that he saw the silversmith.
The new investment provides the fuel for Zonos to grow in product development and go-to-market while also expanding its worldwide team in Europe and Asia Pacific. Eighteen months ago, the company had 30 employees, and now there are over 100. It has over 1,500 customers worldwide and provides them with millions of landed cost quotes every day.
“Right now, we are the leader for APIs in cross-border e-commerce, but we also need to be the technology leader regardless of the industry,” Reid said. “We cannot admit that we are good enough, we need to get better at doing this. We are looking at expanding into additional markets as it goes beyond just serving US companies, but also our customers. needs to be replaced.”