Hillhouse Capital is known for long-term investments in China and around the world, according to the announcement, and will work with the company and Permira funds, which retains a majority stake in the company, to support Magento’s future vision. Hillhouse also counts Chinese internet service companies Baidu and Tencent among its holdings.
Since being spun out from eBay in 2015, Magento has become the largest e-commerce platform in the world, with over 250,000 clients generating over $50 billion in “annual merchandise volume” combined, according to Magento Commerce CEO Mark Lavelle.
“In addition to the capital that will accelerate our growth, this investment brings the experience and long-term perspective of another marquee investor,” Lavelle said. “Both Hillhouse and Permira see that in nearly every industry, there is a major secular acceleration taking place driving demand for digital commerce technology. Yet clients have few options when looking for a company whose sole focus is on digitizing the customer experience across all channels where commercial transactions occur. Magento’s goal is to be the leading company for the next generation of commerce innovators, and it is a privilege to have two prominent technology investors backing our vision.”
Lei Zhang, Hillhouse Chairman and CEO, said, “We see tremendous growth opportunities for Magento globally and specifically in Asia. We are excited to be partnering with such an exceptional management team to continue to build and grow the business over the long-term.”
Magento acquired cloud-based analytics firm RJMetrics last summer to bring a native data and insights solution to its platform.
The launch of advanced public cloud PaaS Magento Commerce Cloud in April marked a shift in its business strategy, the company says. By allowing companies using Magento Enterprise Edition to add Magento Commerce Order Management and Magento Analytics (a result of the RJMetrics acquisition), Magento is transitioning from a provider of online sale and payment services to a broader portfolio of commercial SaaS offerings based on its Commerce Cloud platform.