Retail Technology Sector Overview - Q1 2018

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The Retail Technology sector includes companies that facilitate the operational procedures of retailers. It also contains companies that make it easier to search and shop for merchandise. 

What are the different components of Retail Technology? How do they make up this startup ecosystem? On our retail tech research platform, we have classified the companies into 21 categories. This blog post examines these categories and how they compare with one another.

Marketing Platforms Is the Largest Category

Let’s start off by looking at the Sector Map for the Retail Technology sector. As of March 2018, we have classified 1,746 Retail Technology startups into 21 categories. They have raised $59 billion in funding. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Retail Technology Sector Map

We see that Marketing Platforms is the largest category with 245 companies. This category includes companies that enable merchants to execute and manage marketing campaigns. It also contains customer relationship management tools used to improve customer engagement. Some example companies in this category include Showpad, Sprinklr, Gainsight, and Medallia.

We have seen the Retail Technology categories and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Marketing Platforms Is the Heavyweight Category in Retail Technology

Our Innovation Quadrant divides the Retail Technology categories into four different quadrants.

Retail Technology Innovation Quadrant

We can see that Marketing Platforms is in the Heavyweights quadrant. Heavyweight categories have reached maturity with large amounts of funding. 11 categories are in the Established quadrant for reaching maturity with less financing.

4 categories are Disruptors, acquiring significant financing at a young age. The final 5 categories belong in the Pioneers quadrant. They are in the earlier stages of funding and maturity.

We've now seen the Retail Technology categories and their relative stages of innovation. Marketing Platforms emerges as a key category. It leads in total companies and appears in the Heavyweights quadrant. Yet how does its funding stack up against other categories? Let’s look at the Total Funding and Company Count Graph.

Last Mile Logistics Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

Retail Technology Total Funding and Company Count

As the above graphic implies, the Last Mile Logistics category leads in funding. Its $13 billion in funding is almost 50% higher than the next category, POS Payments.

Last Mile Logistics companies are innovating on the last phase of the supply chain. They work on moving goods from a local retailer to a consumer's home. Some example companies in this category include Instacart, DoorDash, Bigbasket, and Deliveroo.

Conclusion: Marketing Platforms and Last Mile Logistics Lead the Sector

The graphics above show that Marketing Platforms leads the sector for having the most companies and being a Heavyweight relative to other categories. The Last Mile Logistics category leads the sector for having the most funding.

To learn more about our complete Retail Technology report and research platform, visit us at www.venturescanner.com or contact us at [email protected].

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