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.”

Related Articles

German Legislature Preempts EU Reforms with National Competition Law Amendments Targeting the Digital Economy

Jan 14, 2021

Berlin, GERMANY — Members of the German parliament voted to approve far-reaching regulations for large digital platforms today. Once signed into law, the proposal would make Germany the first jurisdiction in the EU specifically regulating market power in the digital economy. The reform introduces article 19a in the German “Act against Restraints of Competition,” setting…

New EU Cybersecurity Rules Should Promote Security Mitigation, Avoid Compliance Red Tape

Dec 16, 2020

Brussels, BELGIUM — The European Commission published today a legislative proposal to update the 2016 Network and Information Security Directive.  The proposal aims to reduce regulatory inconsistencies across the EU’s internal market and it encourages security information sharing to help companies effectively address future cybersecurity risks. But the proposal also suggests that cloud computing providers,…

CCIA Responses To EU Digital Markets Act and Digital Services Act Proposals

Dec 15, 2020

Brussels, BELGIUM — The European Commission presented its Digital Markets Act (DMA) and its Digital Services Act (DSA) proposals earlier today. The Digital Markets Act seeks to target the core services of so-called digital “gatekeepers” by restructuring their relationships with business users and imposing new terms and obligations. These obligations can be updated, new services…