Cratejoy raises Series A funding to hire more Austin engineers

Oct 15, 2014
Austin Business Journal

Cratejoy Inc., an e-commerce software maker, has completed a $4 million Series A round of funding that company officials plan to use to hire additional engineers

The Austin-based startup, which employs 17 workers, collected the capital from Boston-based Charles River Ventures Inc. As part of the deal, investor Devdutt Yellurkar has joined the Cratejoy board

Cratejoy develops subscription-based e-commerce processing software to make it easier for merchants to collect payments. CEO Amir Elaguizy said he expects to employ about 23 workers by the end of the year and as many as 75 by late 2015

Elaguizy got the idea for the business while in the California-based Y Combinator incubator in October 2013. He and business partner Alex Morse built the initial generation of software from November 2013 until January 2014 while gathering feedback from prospective customers

Cratejoy had 800 merchants on the waiting list by time the coding was completed. The company now claims that 2,400 are waiting to be accepted

Cratejoy charges customers $1 per subscriber per month to create an alignment between Cratejoy and its users. Both sides benefit from operational efficiencies so they’re slowly adding new customers to give it time to ramp up and refine the software

The Series A funding increases to $6.2 million the amount of investment capital the company has collected since launching. It previously received $2.2 million seed funding from SV Angel, Y Combinator, Capital Factory, California-based Andreessen Horowitz, Maverick Capital, Start Fund and ACE Venture Fund

Elaguizy and Morse previously launched MarketZero Inc., an Austin-based startup that was acquired by Zynga Inc. in 2011 for an undisclosed amount. Elaguizy also founded in 2005 Fifth Street Software Inc., a Dallas-based company, according to his online profile.

Yellurkar said the monthly subscription approach is a business model that shows promise

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