US VC Tiger Global has backed a B2B marketplace developed by the former CEO of eCommmerce platform Catch with a $28 million investment.
Tiger previously backed Catch, and this week has also chipped into a Sydney grocery delivery startup’s $75 million Series A.
TradeSquare is a B2B wholesale marketplace launched in 2020 by former Catch CEO Nati Harpaz and entrepreneur Einat Sukenik. The duo set out to create an online B2B platform that would deliver a more efficient Australian wholesaling industry while overcoming Covid challenges for retailers.
TradeSquare has already attracted 1,000 suppliers with more than 150,000 SKU’s, and more than 10,000 registered buyers, making it the largest wholesale platform in Australia.
Harpaz said they want to reinvent wholesale in Australia.
“This investment will allow us to scale in a very significant way and build upon our rapidly growing business proposition and model, our use of smart technology, and the strong executive team that we have put together,” he said.
His co-founder, Sukenik, who is also TradeSquare’s CEO, said the traditional way of bringing wholesalers and retailers together was trade shows and overseas buying trips, but Covid stopped both.
“You can think of TradeSquare as a 24/7 digital trade show – allowing retailers to easily discover and order wholesale products, and wholesalers access to retailers Australia-wide,” she said.
“Our initial focus is gift and homewares, but ultimately the market is much broader. We are hugely excited by the opportunities that lie ahead.”
Sukenik said TradeSquare empowers small businesses to easily discover and order wholesale products.
“Yesterday a gift and homeware shop in Dubbo placed an order from 11 wholesalers in one cart, with one invoice and 60-day credit terms. This is a game-changer, especially with Covid still restricting retail business activity,” she said.
“Convenience, data and community are three key factors contributing to growth in independent retail. These funds will allow us to keep the focus on creating an exceptional B2B experience both for Australia’s retailers and wholesalers through smart technology.”
She said that unlike other wholesalers and distributors, TradeSquare doesn’t demand upfront payments, which were and still are prohibitive for all retailers, as well as credit terms for wholesalers.
“Our terms have been developed to answer the challenges that small businesses in Australia have been facing and they will continue to evolve in the coming years,” she said.
“We’ve created an open channel with retailers and wholesalers to ensure that we build a solution that matters to both.”
Harpaz said they also tackle marketing for wholesalers.
“Our wholesalers are manufacturers, makers and distributors. That’s what they do and what they know,” he said.
“We actively market our wholesalers under the one umbrella so that they can focus on what they do best.”