An ecommerce platform that enables companies to set up an online store in a fraction of the time it takes to build a traditional website has raised over £1.5m to help establish it as a leader in the business-to-business ecommerce market.

Shopblocks has raised funding from NPIF – Mercia Equity Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund, Mercia’s EIS funds and an existing investor, Greater Manchester Combined Authority (GMCA).

Shopblocks is aimed at medium and large companies with complex pricing models or supply chains such as wholesalers, IT resellers or businesses offering bespoke products. Its ‘no code’ platform provides a series of building blocks that can be rapidly assembled to create a complete website.

The Stockport-based company also has a team which can build the site on a client’s behalf and provide ongoing support. Shopblocks enables users to create a complete ecommerce ecosystem, with multiple linked accounts and different stores for different brands or locations, and create ‘white label’ sites for their resellers and dealers.

Shopblocks was founded by its CEO Kevin Jones who previously ran a digital agency. He was joined by former schoolfriend Stewart Reynolds, an experienced software sales executive, as Chief Commercial Officer. The company, which employs 35 staff, now has over 2,000 customers including Toshiba, Daisy Telecom and Tower Housewares, and annual recurring revenue of over £1m, in addition to project fees.

The latest funding brings the total raised to date to over £3.5m and will enable the business to immediately create ten new jobs, further enhance its platform and attract more large B2B-focused clients.

Stewart Reynolds, co-founder and CCO, said: 

“Around 40 per cent of brands with a B2B-focus have still not adopted ecommerce, largely because of the challenge of transferring their business model online. Many companies who come to us do so on the back of a two-year failed attempt to launch a store fit for their business. Shopblocks offers a solution. The funding will help us attract more ‘enterprise’ clients and support our goal to become a £50m turnover business.”

Robert Hornby of Mercia said: 

“Most ecommerce platforms are not tailored to the needs of companies operating in a complex stock environment. Shopblocks fills a gap in the market, as well as significantly reducing the time and cost of launching an ecommerce site. We believe there is huge potential for it to expand its client base and become a leader in the business-to-business market.”

Cllr David Molyneux, GMCA lead for Resources and Investment, said: 

“This investment will provide a welcome boost for Greater Manchester’s economy and create several high-quality, future-facing jobs. Shopblocks is a leading technology company in ecommerce, and another example of the strength of Greater Manchester’s digital sector.

“We want Greater Manchester businesses to thrive, so that residents have access to well-paid and secure jobs and our economy continues to grow. Our investments play an important part in supporting this growth.”

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank. 

ENDS

About Mercia Asset Management PLC

Mercia is a proactive venture capital investor that aims to be a start-up’s first-choice partner for growth. Mercia currently has c. £1.4 billion of assets under management and has invested in a portfolio of over 400 start-ups from pre-seed to Series B and beyond. Mercia has nine offices in the UK and over 60 investment professionals, all drawing on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions.

Mercia’s venture funds sit alongside the Mercia Group’s wider private equity, debt and proprietary balance sheet capital, in order to provide a ‘Complete Connected Capital’ solution for our portfolio.  Mercia Asset Management PLC is quoted on AIM with the epic “MERC”.

www.mercia.co.uk

Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –

• Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
• Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
• EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560

About The Northern Powerhouse Investment Fund

• The Northern Powerhouse Investment Fund will invest in Microfinance, Business Loans and Equity Finance sub-funds which will offer financing ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.
• The Northern Powerhouse Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.
• The Northern Powerhouse Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
• The NPIF covers the following LEP areas: Tees Valley Combined Authority, Greater Manchester, Cheshire and Warrington, Cumbria, Liverpool City Region, Lancashire, Hull and East Yorkshire, Leeds City Region, Sheffield City Region, and York & North Yorkshire
• The project is receiving up to £140,359,192 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
• The funds in which Northern Powerhouse Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, Yorkshire and the Humber, the North West and Tees Valley.
• The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at www.thebusinessfinanceguide.co.uk/bbb

About Greater Manchester Investment Fund

The Greater Manchester Investment Fund is a series of investment funds aimed at encouraging business growth and investment in property and infrastructure.  

Investments made by Greater Manchester Combined Authority (GMCA) into the local economy have reached £192m to date, with the figure continuing to rise through fund recycling as money is given back from previous successful business investments, and reinvested in new projects. 

Greater Manchester’s devolved powers means GMCA can respond flexibly and creatively to local priorities, allowing the Authority to control the allocation of government resources.

The city-region’s unique approach to investment means it is able to invest effectively and recycle that investment. 

The investment also supports Greater Manchester Local Industry Strategy, which is a joint plan with Government to capitalise on our city-region’s assets and opportunities to create good jobs as well as growth for Greater Manchester. This includes bringing attention to creating jobs in high-technology ‘frontier’ sectors for regional economic progress.  

To find out more information on how to apply for the fund please visit greatermanchester-ca.gov.uk/what-we-do/investment or call 0161 778 7011 or email [email protected]