According to a regulatory filing, LA-based Magento Commerce, which develops an open source e-commerce software suite, has recently received a $22.5 million capital injection in an equity funding round.
Magento was originally a product developed and marketed by Varien, a 9-year old company that also delivers e-commerce business consulting and other services, but has now effectively been incorporated as a stand-alone venture. It’s unclear whether the financing of Magento comes from Varien, or if the latter company’s existing and / or other investors have stepped in to provide funding. Either way, the company says it concerns ‘fresh’ cash.
If I were to venture a guess, I would say PayPal plays a part in this story – from what I can gather the least you can say is that the digital payment company has a deep partnership with Magento that spans both co-marketing of their respective services as well as a collaboration on a product development level.
I had a brief chat with Tim Schulz, the former MySpace product manager who recently became Magento’s Senior Product Manager, who told me they’re positioning the Magento Commerce solution right in the center of various growth areas in electronic commerce and that its goal is to become the provider of the single largest e-commerce platform in the world. Bonus points for showcasing some ambition.
Magento currently has over 60,000 merchants using its software, which was downloaded about 1.5 million times as of January 2010. The company also says they’ve registered over $15 billion in transactions to date. The roadmap for the future is apparently paved with additional products, with a number of “Mobile Commerce, Saas offering and other products/services” coming later this year.
Here’s a video of Varien / Magento CEO Roy Rubin outlining his vision on open source e-commerce: