Demandware scheduling IPO
The e-commerce on-demand software provider, Demandware, (Burlington, MA, USA), has recently announced terms for its IPO.
Demandware provides on-demand software to help businesses design and maintain e-commerce sites. The software is sold on a subscription, with an average three year contact. Latest figures from the organisation report that there were 101 customers operating 361 sites with the Demandware software. This includes website, on-line stores and mobile apps. Brands that are using the software include Proctor & Gamble, L’Oreal and Panasonic, to name but a few.
As the numbers of customers increased (up 46% in 2011), the sales, too have increased to $57million. However, even with these figures, the company is still running at a net loss, with $1 million for the year. The German based merchant, Neckerman, accounted for 21% of revenue.
We learn that the venture capital firms, North Bridge Venture Partners and General Catalyst Partners are not selling on the offering and will each have a 26% post-IPO stake. Founder and Chairman Stephan Schambach will own approximately 16% of shares after the offering.