B2B electronic commerce venture NuOrder secures $45 million fundraising round

B2B electronic commerce venture NuOrder secures $45 million fundraising round

NuOrder, a business-to-business e-commerce platform, has raised $45 million in funding from Brighton Park Capital, Imaginary Ventures, and other investors. This funding will be used to expand into target markets and facilitate its ability to reshape commerce, payments, data, finance, and discovery between brands and retailers.

The company is particularly focusing on the European market, with the help of strategic partners and investors. Mark Dzialga, managing partner of Brighton Park Capital, and Natalie Massenet, co-founder and managing partner of Imaginary Ventures, have joined NuOrder's board to help the startup grow internationally in payments and online marketplaces.

NuOrder's expansion into the European market is primarily focused on the hospitality sector. The company is leveraging AI-powered tools and contactless payment features to support hospitality businesses in Europe, with particular deployments in the UK, Netherlands, and Belgium. These innovations include AI-powered Benchmarks & Trends that allow restaurant operators to compare their performance against peers in real time and Mobile Tap, a contactless payment feature that enables faster table turnover.

In addition to technology-driven growth, NuOrder is deepening partnerships with major retailers like David Jones. The company's platforms are designed to reduce overstocks, localize assortments, and enhance collaboration with brands, supporting retailers' vision to modernize retail experiences. This expansion supports broader retail digital transformation and value chain improvements, with significant efficiency gains such as reducing order writing time by approximately 55% at David Jones via NuORDER platforms.

NuOrder's growth can be attributed to the need for businesses to streamline their operations and increase their earnings during the COVID-19 pandemic. The company has experienced a 125% growth over the past twelve months, which it attributes to this shift in business needs. However, less than a third of NuOrder's gross merchandise volume comes from European companies.

The company recently launched its wholesale payment service in late January. Saks Fifth Avenue, Bloomingdale's, and Nordstrom are among the retailers that use NuOrder for all their buying and selling. Under Armour plans to exit between 2,000 and 3,000 wholesale doors, and Nike has closed wholesale accounts with nine retailers, including Belk, Dillard's, Fred Meyer, and Zappos, as they shift to a direct-to-consumer strategy.

Lightspeed, NuOrder's parent company, projects long-term growth with a customer location growth rate of approximately 10-15% compound annual growth rate (CAGR) from fiscal 2025 to fiscal 2028. The company reported a revenue increase of 15% year-over-year with a notable rise in subscription and transaction-based revenues, reflecting positive market acceptance and operational scaling in Europe’s hospitality sector.

Overall, NuORDER’s European expansion strategy centers on targeting hospitality customers with AI-enabled operational tools and payment innovations, expanding partnerships with established retailers to digitize and optimize buying processes, driving sustainable recurring revenue growth through enhanced subscription offerings and customer adoption, and supporting broader Lightspeed strategic goals of consolidating offerings and achieving synergies in infrastructure. The growth outlook is optimistic, with Lightspeed’s European hospitality segment contributing significantly to its strategic expansion, backed by innovative product launches and deepening customer partnerships.

1. NuOrder, with the aid of strategic partners and investors like Brighton Park Capital and Imaginary Ventures, is targeting the European market, specifically the hospitality sector, to expand its business.
2. Leveraging AI-powered tools and contactless payment features, NuOrder aims to support hospitality businesses in Europe, with focuses in the UK, Netherlands, and Belgium.
3. The company's strategic growth in Europe is driven by the need for businesses to streamline their operations and increase earnings during the COVID-19 pandemic, resulting in a 125% growth over the past twelve months.
4. NuOrder's European expansion strategy includes targeting hospitality customers, deepening partnerships with established retailers, driving sustainable growth through enhanced subscription offerings, and supporting Lightspeed's strategic goals of consolidating offerings and achieving synergies in infrastructure.

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