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Top E-commerce Startups to Watch (and Work for) in 2023

July 14, 2023
      |      Kieran Ryan
iphone with a man ready to played on video next to a phone with a women in a insta live video next to a bunch of metrics.

My Background

Hi, I'm Kieran! I worked in startups for five years at On Deck and Wefunder. Some of my favorite things that I've worked on during my career include:

  • Wefunder Workaway: 12 founders working on a new idea, 7 days, 1 mansion in Hawaii. One of the teams we picked raised a Series A from Andreessen Horowitz, and two people who met during the trip got married...
  • On Deck: As employee #15, I contributed to the startup's growth from no revenue to a $20 million run rate in less than a year. I led the team that built the admission infrastructure to support and scale ~20 fellowships for founders, capital allocators, operators, and creators.
  • XX: Worked on a pre-YC accelerator program that invested $125K on an MFN SAFE into 8-10 teams per cohort.
  • ODX: Worked on a $100 million accelerator program that invested $125K for 7% into 100s of startups. We partnered with leaders like Flexport to build vertical industry tracks around supply chain & logistics, etc.
  • Ryan Marketing: Created an influencer marketing startup (2 million+ Instagram followers) during college with my twin brother and realized early that monetization for creators was broken. I learned a lot, and it paid enough to cover my schooling, rent, and meals.

The Methodology

I considered several data points to arrive at the startups selected on this list, including company traction, funding raised, valuation, and investors. From my initial list, I then referenced each startup with my personal network to narrow down the list to the one you see below. I take my credibility seriously, so I do not take any money from startups who want to be included on this list to remain impartial. If you want to understand my analysis of startups and prefer long-form content, read my research on the top startups of 2023 afterward.

Hexagon with grey gradient shadings making it look 3D

Alloy Automation

E-commerce automation platform.

Headquarters

New York, New York

Industry

E-commerce

Founded

2019

Funding

$25 million

Valuation

Undisclosed

Traction

  • Alloy has 100+ system integrators & developer agencies and 200+ technology partners for every part of the e-commerce stack. Popular integrations include WooCommerce, Shopify, Zendesk, Twilio, and Pixlee.
  • Alloy customers include Postscript, Brooklinen, Studs, Dr. Squatch, Recharge, Burberry, Amazon, Wyze, Skis.com, Gorgias, and PrettyDamnQuick.

Canal Logo

Canal

A dropshipping platform for modern brands.

Headquarters

San Francisco, California

Industry

Consumer, Retail, E-Commerce

Founded

2020

Funding

$27 million

Valuation

Undisclosed

Traction

  • As of March 2022, Canal had onboarded 165 brands on its platform, with 1,000+ brands on its waitlist.
ShipBob Logo

ShipBob

Global e-commerce fulfillment solution.

Headquarters

Chicago, Illinois

Industry

E-commerce

Founded

2014

Funding

$330.5 million

Valuation

$1 billion+

Traction

  • As of June 2023, ShipBob has 7,000+ customers, up from 5,000 in June 2021, including 100 Thieves, Chamberlain Coffee, Dossier, The Adventure Challenge, Hero, Spikeball, and TB12 Sports.
  • As of June 2023, ShipBob reported 99.96% of orders ship on time within SLA, a 99.95% accuracy rate in fulfilling orders, and 40+ fulfillment centers across 6 countries.
Gadget Logo

Gadget

Gadget is a full-stack serverless platform to build, host, and launch your apps. Skip the boilerplate with built-in e-commerce integrations, a fully managed database, instant APIs, and hosted React frontends.

Headquarters

Ottawa, Canada

Industry

E-commerce

Founded

2020

Funding

$8.5 million

Valuation

Undisclosed

Traction

  • Gadget customers are e-commerce brands and agencies, including Rewind Backups, Bird&Be, MissedFits, Showday, on / Sight, MVST Select, and ELEVEN Australia.
  • As of May 2023, Gadget’s Discord community has 751 members.
Pietra Logo

Pietra

All-in-one membership for E-commerce brands to lower costs and grow your business.

Headquarters

New York, New York

Industry

E-commerce, Creators

Founded

2019

Funding

$36 million

Valuation

Undisclosed

Traction

  • As of May 2023, Pietra has 100,000+ active users on its platform.
  • In 2022, Pietra reported a 35x YoY revenue increase and a 100x increase in transaction volume.
Two Logo

Two

Buy now, pay later solutions for e-commerce.

Headquarters

Oslo, Norway

Industry

Fintech, E-commerce

Founded

2021

Funding

20.5 million euros

Valuation

Undisclosed

Traction

  • As of March 2023, since launching Two in Q2 2021, Two has grown 243% quarterly and won 79% of competitive sales processes.
  • As of March 2023, the largest order accepted through Two’s software was 450,000 euros, which completed checkout in 45 seconds.
  • As of March 2023, Two has 175 customers, including merchants like REKKI, Eplehuset, Kandidate, Cake It Easy, Givn, and Fleek.
Settle Logo

Settle

Tame your cash flow workflow.

Headquarters

San Francisco, California

Industry

E-commerce, Fintech

Founded

2019

Funding

$100 million

Valuation

Undisclosed

Traction

  • As of November 2021, Settle surpassed 500 customers, including Lalo, Snibbs, Bare & Bones, Thousand Fell, Jiant, Italic, Ghia, Branch, HigherDOSE, Starface, and Ceremonia.
  • As of November 2021, Settle has increased its revenue 20x over the previous year.
Studs Logo

Studs

A fresh take on ear piercings & earrings.

Headquarters

New York, New York

Industry

Consumer, E-commerce, Health & Beauty

Founded

2019

Funding

$30 million

Valuation

Undisclosed

Traction

  • As of May 2023, Studs has 19 ear-piercing studios.
  • As of October 2022, Studs reported 30x e-commerce growth since 2019.
Bowery Logo

Bowery

Vertical farming and agriculture company.

Headquarters

New York, New York

Industry

Agtech, Consumer, E-commerce

Founded

2015

Funding

$625.9 million

Valuation

$2.3 billion

Traction

  • Between January 2020 and May 2021, Bowery has accomplished 750% retail growth and more than 4x e-commerce sales growth.
  • As of May 2021, Bowery is in more than 850 grocery stores in the Northeast and Mid-Atlantic regions, including Whole Foods Market, Safeway, and Walmart.
  • In 2022, Bowery increased its retail distribution by 40% and doubled its production. As of May 2023, Bowery is on track to double its production again.
The Expert Logo

The Expert

Book video consultations with the world's top interior designers.

Headquarters

Los Angeles, California

Industry

Consumer, Homecare, E-commerce

Founded

2021

Funding

$15 million

Valuation

Undisclosed

Traction

  • As of March 2022, The Expert has 140 interior designers on its platform and a waitlist of 1,500 interior designers.
  • In its first 12 months of operating, The Expert surpassed $5 million in revenue.
FabFitFun Logo

FabFitFun

A lifestyle membership and shopping experience.

Headquarters

Los Angeles, California

Industry

E-commerce

Founded

2010

Funding

$262.1 million

Valuation

Undisclosed

Traction

  • As of October 2020, FabFitFun delivered 1.5 million subscription boxes every quarter.
  • As of January 2019, FabFitFun reported 1 million subscribers and $200 million in revenue.
OpenStore Logo

OpenStore

Get paid for your Shopify store.

Headquarters

Miami, Florida

Industry

E-commerce

Founded

2021

Funding

$150 million

Valuation

$970 million

Traction

  • As of June 2023, OpenStore reported 1.7 million consumers buying from their stores, 40+ Shopify stores in their portfolio, and 100,000+ products across multiple categories.
  • In September 2022, OpenStore reported its acquisition sweet spot as US DTC brands doing between $1 million to $10 million in gross merchandise volume.
Disco Network Logo

Disco Network

Brand partnership platform.

Headquarters

San Francisco, California

Industry

Shopping, E-commerce, DTC

Founded

2020

Funding

$25.8 million

Valuation

Undisclosed

Traction

  • As of June 2023, Disco has 1,000+ brands on the platform, up from 500 in June 2021.
  • As of June 2023, Disco reports brands are seeing a 25% increase in return on ad spend, a 50% increase in average order volume, a 15% reduction in cost per acquisition, and $18 billion in network transaction volume.
  • As of June 2023, Disco reports 5 million+ monthly shoppers.
  • Disco customers include Faherty Brand, Caraway, The Honest Company, Boxed Water, Clevr, Kosas Cosmetics, Lovevery, True Botanicals, MUD/WTR.
  • In 2021, Disco saw $1 billion+ of transactions across its brand network and 40 million+ shoppers as brands saw 30% to 50% lower costs.
  • In 2021, Disco reported 10x revenue growth.
BorderX Lab Logo

BorderX Lab

An e-commerce marketplace to sell to China and beyond.

Headquarters

Sunnyvale, California

Industry

E-commerce, Marketplace

Founded

2013

Funding

$20 million

Valuation

Undisclosed

Traction

  • As of June 2023, BorderX Lab reports 14 million users, shoppers spend 25 mins daily browsing content on the platform, and 50% of sales come directly from digital content.
  • As of June 2023, BorderX Lab has 100+ merchant partners, including Macy’s, Bloomingdales, Urban Outfitters, Foot Locker, Michael Kors, Nordstrom Rack, and Harvey Nichols.
  • In 2017, BorderX Lab was partnered with more than 50 merchants, including Saks, Peter Thomas Roth, Finish Line, Forzieri, and Everlane.

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