Investment, Innovation in European Ecommerce Companies Booming, Study Reveals

BY Heather Greenfield
November 11, 2015

Brussels — Investors are betting on the continued growth of Europe’s ecommerce market with investment into both public and private ecommerce companies growing from millions to billions in the past three years. That is the finding of an an ecommerce study CCIA Europe commissioned from independent equity research house ‘The Analyst’. The study examined the state of innovation and investment in Europe’s ecommerce market from 2012-2015.

The new report illustrates several success stories in fashion, real-estate, and food delivery, whose range shows how the ecommerce market is becoming more diverse. It concludes the success is owed in part to increased investment and the ability to use that investment due to low barriers to entry. Overall, investments into the study’s sample group of 25 publicly traded, pure ecommerce companies have increased by 27 times over the last 3 years. Capital inflows into the sample group of 500 private ecommerce companies, many in the startup/early development phase, increased by 4.5 times in the same period.

Since 2012 the group of 25 publicly listed ecommerce companies raised €12 billion and the group of 500 private companies raised over €5 billion.

“Our analysis showed a clear upward trend in investment and innovation in European ecommerce companies from 2012-2015 with capital raised by our public sample group growing from €315 million in 2012 to €6.6 billion by 2014,” said Mark Hiley, CEO of The Analyst. “Capital is increasingly attracted to the sector, and good businesses with strong products are able to raise funds in the public and private equity markets and then deploy those funds through operational and capital spending.“

Given the European Commission is considering policies that could impact the ecommerce investment climate, CCIA commissioned the study to better understand current market dynamics. The following can be attributed to Jakob Kucharczyk, Director, CCIA Europe:

“It’s time to change the rhetoric around European ecommerce businesses. Continuously growing investment levels reveal a high level of innovation and ingenuity. They also reveal a healthy, dynamic and highly competitive marketplace that attracts billions. The findings of the study give testimony to digital markets’ low barriers to entry ensuring vibrant competition. As the European Commission looks into digital platforms it needs to make sure it does not impede this positive development.”

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