Rutter raises $1.5M and emerges from stealth

SaaS News - Rutter raises $1.5M and emerges from stealth (source: SaaS Industry)
At a Glance

VC firm Companyon Ventures has closed its second fund worth $27.5M to invest in post-seed Rutter, a remote-first business, has announced that Haystack, Liquid 2, and Basis Set Ventures have invested $1.5 million in its seed round. With the additional funding, founders Eric Yu and Peter Zhou will be able to grow their team, including hiring more engineers.


Rutter, a remote-first company, announced that it has emerged from stealth with $1.5 million from investors, including Haystack, Liquid 2, and Basis Set Ventures. Rutter is working on a universal e-commerce API that will allow businesses to access data on any platform. 

The founders Eric Yu and Peter Zhou will be able to expand their staff with the extra investment, including employing more engineers.

Eric and Peter met in high school and began working on Rutter in 2017, which Peter dubbed “Paid for Commerce,” before enrolling in the summer 2019 Y Combinator batch.

They came up with the concept for an e-commerce API while working in educational technology last year. Parents worried about their children’s learning amid the worldwide epidemic might get the duo’s subscription kits and instructional materials. When their vendor customers had trouble listing their shops on Amazon, they created scripts to assist them but discovered they needed to build scripts for each platform separately.

Customers simply need one script to connect everywhere with Rutter. Eric told ToldCrunch that its APIs connect to e-commerce platforms like Shopify, Walmart, and Amazon, allowing IT clients to develop services like customer care and chatbots.

Lan Xuezhao, the founder and managing partner of Basis Set Ventures, said she was “very enthusiastic” about Rutter due to the founders’ enthusiasm, tenacity, and speed with which they iterated on a product. She went on to say that it reminded her of another team that successfully grew a company from $0 to over $7 billion in revenue.

After watching them (Rutter) for a few years, it’s clear what they built is powerful: it’s the central nervous system of online commerce.

Lan Xuezhao, the founder and managing partner of Basis Set Ventures

Some of Rutter’s clients focus on one element of commerce, such as returns, warranties, and checkouts. Still, Yu noted that because Shopify only accounts for 10% of e-commerce, the company’s objective is to grow beyond the marketplace by being the unifying app store for merchants to locate items.

We think that in the future, the e-commerce stack of a merchant will look like the SaaS stack of a software company. We want to be the glue that holds that stack together for merchants.

Lan Xuezhao, the founder and managing partner of Basis Set Ventures
Total
1
Shares
Previous News Post
Next News Post
Most Popular