E-commerce: Zoomici raises 1.3 million euros for its marketplaces distribution solution
When they are new to e-commerce, it is not always easy for traders to integrate the right reflexes and the most appropriate marketplaces. Companies with this knowledge therefore position themselves as intermediaries. This is the case of Zoom here, a company founded in June 2000 in Valence, which has just raised 1 million euros from ESPIN Gestion, a subsidiary of Crédit Coopératif and Rhone Alpes Création. The two partners complete this contribution and invest 300,000 euros.
The company – which employs 15 people – positions itself as a distribution channel. It has established partnerships with eleven large consumer marketplaces: Amazon, eBay, PriceMinister, 2xmincher, ParuVendu, TopAchat, Pixmania, Fnac, Rue du Commerce, Abe book and A la page. Its suppliers then see their products highlighted on these sites, which will boost their visibility and therefore their sales. Zoomici manages around 500,000 references for all types of products except food. He acts as the intermediary between end customers and suppliers, taking a commission in the process. “It is a company in which we have decided to invest in seed money but which has long sought its economic model and which adopted it in 2010” relates Isabelle Bou-Antoum, Deputy Managing Director of the Rhone venture capital company Alps Creation.
An algorithm to place the right products in the right place, at the right price
“We have no stock” explains Hervé Farge, Managing Director and partner at Zoomici. The company fixes with its suppliers a fixed purchase price for the products, the order is effective once the product has found a buyer on one of Zoomici’s partner marketplaces. The core business of this company based in Drôme lies in its algorithm which defines for each product what is the best marketplace to sell it and at what price. “The price may be different depending on the marketplace, because the competition, the shipping costs and the site’s commission rate vary,” says Hervé Farge.
This first fundraising will allow the e-merchant (which also publishes its own market place) to expand into the European market. It has also just set up in Italy, Spain and Belgium. This will soon be the case in the United Kingdom and Germany. The establishment consists of the establishment of logistics partnerships in these countries and involves the translation of their site. “We need to centralize orders to lower our delivery costs across Europe” continues Mr. Farge.
Two new people recruited by the end of 2014
The capital contribution also aims to hire 2 people by the end of the year (including a developer) and improve cash flow. “This increase in our equity will reassure our partners” confides Hervé Farge.
Zoomici achieved 8,573,900 euros in turnover between June 2012 and June 2013, and generated 8,447 euros in profits over this period. “For the fiscal year ended in June 2014, the balance sheet is in the process of being finalized but we estimate our income at 9.9 million euros” specifies the CEO of the company.