Toronto-based company with uniquely unified multichannel marketing automation platform acquires the Australian e-commerce platform, Neto, for 58 Million CAD.
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Ross Andrew Paquette, the CEO, chairman, and founder of Maropost told Betakit that the goal for this acquisition was to leverage the Neto’s team knowledge of e-commerce and evolve Maropost’s own e-commerce offering.
As a company, Maropost’s mission has always been to simplify customer engagement for B2C brands and retailers and enhance customer experience. To accomplish this, Maropost now has multiple products on offer that provide the tools and solutions required for processes that enable its users to automate their marketing processes (be it involving email marketing, SMS marketing, and more.)
Maropost also offers complementary services like; JetSend (which enables marketers to send transactional emails more efficiently) and InboxAware (for deliverability and inbox placement. Neto, of course, will not be a complementary product, but instead, a part of their core offering. With the goal behind the merger of the two being the marriage of Maropost available marketing automation services with Neto’s e-commerce platform to provide the ultimate e-commerce solution and boost revenue for their users.
CEO Ross Andrew Paquette notes that Maropost “has been aggressively expanding into the e-commerce vertical” in the last couple of years. And that now, with Neto (which is a platform well-known for its ability to enable businesses to scale and grow further by helping them manage their online stores, POS terminals, inventory, orders, shipping, and marketplace connections), Maropost intends to push and expand even further into the e-commerce market.
In accordance with this goal, Neto’s team, which includes around 90 people, has joined Maropost’s existing team of 160.
“Obviously, the revenue and customers [that come with Neto] are great, but that wasn’t the driving force behind [the deal],” says Paquette. “What we’re looking to accomplish is to acquire 30 or 40 individuals in the organization that have a tenure of over eight years, and, of course, that’s an extremely long time within the industry.”
Maropost has always been very conscious of who they bring into their team. Ever since its bootstrapped-founding in 2011 by Paquette, Maropost has consistently filled its team with smart and efficient members that were able to function in various areas of the business successfully. A decision that has ended up working in Maropost’s favor over the years.
CEO Ross Andrew Paquette claims that their rapid-growth over the years was accomplished “without raising much capital.” Saying that “Maropost generated 50% of its revenue simply through ‘word of mouth’.” And that he expects Maropost to work its way up to $100 million in revenue by next year.
A goal that Paquette plans to achieve by preserving his philosophy towards growth that is “less focused on raising outside capital and more focused on achieving profitability.”
It should be noted that, in 2016, Ross Andrew Paquette had actually sold a portion of Maropost to venture capital firms in the past. However, after a bad experience, he bought those firms back out and has refused to take any venture financing since.
A choice that he hasn’t abandoned even with the launch of Maropost’s own venture arm, Maropost Ventures, which Paquette comments on by saying:
“The irony is we’re complaining about the same industry that effectively we’re subscribing to. But the reason we’re subscribing to it is that we believe that it can be done in different ways. It can be done from the perspective of investors that truly believe in the founders and are comfortable with the success or failure of the business at the end of the day.”
Altogether, CEO Ross Andrew Paquette intends to continue to keep moving forward without restraint. Telling Betakit that the long-term strategy at the moment is to “take Maropost public within Toronto.”
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