Pipe17 closes $8M to connect a range of e-commerce tools without any code required

This morning Pipe17, a software startup focused on the e-commerce market, announced that it has closed $8 million in funding.

Pipe17's service helps smaller e-commerce merchants connect their digital tools, without the need to code. With the startup's service, e-commerce operations that may lack an in-house IT function can quickly connect their selling platform to shipping, or point-of-sale data to their ERP.

The venture arm of a large logistics investor GLP, GLP Capital Partners led the round.

Pipe17 co-founders Mo Afshar and Dave Shaffer told TechCrunch in an interview that the idea for their startup came from examining the e-commerce market, noting the energy to be found concerning selling platforms, and the comparative dearth of software to help get e-commerce tools to work together; Shopify and BigCommerce and Shippo are just fine, but if you can't code you might wind up schlepping data from one platform to the next to keep your e-commerce operation humming.

So they built Pipe17 to fill in the gap.

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According to Afshar, Pipe17 wants to simplify operations for e-commerce merchants through the lens of connection; the pair of co-founders believe that easy cross-compatibility is the key missing ingredient in the modern-day e-commerce software stack, likening the current e-commerce maket to the IT and datacenter worlds before the advent of Splunk and Datadog.

The prevailing view in the e-commerce industry, the co-founders explained, is that to fix a problem e-commerce players should purchase another application. Pipe17 thinks that most ecommerce companies probably have enough tooling, and that they instead need to get their existing tooling to communicate.

What's neat about the startup is that it's building something that we might call no-code-no-code, or no-code to a higher degree. Instead of offering a interface for non-developers to visually map out connections between different software services, it has pre-built what might need to be mapped. Just pick the two e-commerce services you want to link, and Pipe17 will connect them for you in an intelligent manner. For folks who find any sort of coding hard (which probably describes a lot of indie online store operators), the method could be an attractive pitch.

The startup's customer target are sellers doing single-digit millions to nine-figures in year sales.

Why did Pipe17 raise capital now? The co-founders said that there are only so many chances to simplify a large market, akin to what Plaid and Twilio did for their own niches, so taking on funds now made sense. In Afshar's view, e-commerce operations is going to be simply massive. Given the growth in digital selling that we saw last year, it's a perspective that is hard to dispute.

The niche that Pipe17 wants to fill has more than one player. While the startups themselves might quibble about just how much competitive space they share, Y Combinator-backed Alloy recently raised $4 million to build a no-code e-commerce automation service. Which is related to what Pipe17 does. It will be interesting to see if they wind up in competition, and, if so, who comes out on top.

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