SPS Commerce, a provider of supply chain services for small and mid-sized businesses, has received $18 million in a new round of venture capital funding.
SPS Commerce, a provider of supply chain services for small and mid-sized businesses, has received $18 million in a new round of venture capital funding, the company announced. The Series B round of funding brought in a new investor, River Cities Capital Funds.
SPS says it will use the new financing for acquisitions and to expand into new vertical markets.
"Our extensive experience in the e-commerce, EDI and retail sectors helped us identify SPS as the likely category winner," said River Cities Capital Funds Principal Murray R. Wilson. "SPS Commerce, with its combination of flexible hosted service model, effective customer acquisition/deployment strategies and adroit partner selection, is well suited to leverage its clear leadership position in the supply chain integration service market."
Also participating in the round of funding were existing investors St. Paul Venture Capital, CID Equity Partners, Adams Street Partners, Granite Private Equity, Svoboda Collins & Company, Pacific Capital Ventures and Axiom Venture Partners.
SPS also reported that it reached profitability in the first quarter. Clients include West Marine and Costco.