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Turkish startup ikas attracts $20 million in investment for its e-commerce platform designed for small businesses

When you consider that giant platforms like Shopify, Woocommerce, and Wix dominate the space, it’s easy to think that the e-commerce ship has sailed. But the e-commerce space remains vast and fertile, as many small businesses continue to foray into the internet in the wake of the pandemic.

Given that the average Series A round is typically less than $15 million, one of the largest rounds for a Turkish startup has proven this. E-commerce platform ikas has raised $20 million in Series A funding to expand into new markets in Europe. The company currently operates in Turkey and Germany and says its platform simplifies store management for companies looking to have a digital presence.

The investment was led by the International Finance Corporation (IFC) Funds, the venture capital arm of the World Bank Group.

ikas co-founder and CEO Mustafa Namoğlu told TechCrunch that the company will use the new funds for international expansion in Eastern Europe and the DaCH region.

“Much of Europe is largely ignored or underserved by these American giants,” he said. “Global platforms lack customer service in local languages. Shopify, for example, seems easy to get started with. But once you get started, you’ll need to add other plugins and maybe even an agency to run it.”

Namoru said ikas can win customers over competition from other platforms because it is more of a “set it and forget it” platform. “The first reason our merchants choose us over other companies is the store speed, which gives them a higher conversion rate. Even if you pay us 30 euros per month, you can get it right out of the box. The second The reason is customer service. Third, we bundle payment and shipping labels into our core product, which means you don’t have to go negotiate with a payment provider or shipping labels. You’re ready to go,” he said.

Namoglu previously founded fashion distribution and retail company MUGO and launched ikas in 2017 with co-founders Tugay Karaçay, Ömercan Çelikler and Umut Ozan Yıldırım.

IFC invests directly in companies and through private equity and venture capital funds.

Re-Pie Asset Management, whose portfolio also includes grocery delivery startup Getir, also invested in ikas. Existing ikas investor Revo Capital, the first institutional investor in Getir, Param, Midas and Roamless, participated in this funding round.

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