Rally raises $12M in funding to grow its composable checkout platform for e-commerce merchants
One of the biggest challenges of e-commerce checkout is cart abandonment. The problems are due to a lot of factors including bad user experience and clunky checkout which leads to lost sales for merchants. It’s for this reason that e-commerce tech startup Rally has launched a product that gave merchants full control over their checkout process and boosts their conversions.
Rally was founded by Jordan Gal and Rok Knez, who previously co-founded CartHook, a checkout solution that processed nearly $3 billion in transactions for Shopify merchants.
Before founding Rally with Rok, Gal ran CartHook with his cofounder Ben and later launched the company in 2015 as an abandoned cart app with $275k of funding from friends and family. Then in 2017, they found a bigger idea to work on and launched a product that gave merchants full control over their checkout process. “It was popular immediately, with over $100m in revenue processed in the first year,” Gal said on the company’s website.
Fast forward six years later, Rally has grown to become one of the leading composable checkout platforms for e-commerce merchants. Just last year, the company doubled in size. Rally currently works with PayPal, BigCommerce, and Swell.
To further fuel the growth of its platform, Rally announced today it has raised $12 million in Series A funding led by March Capital, with participation from Felix Capital, Commerce Ventures, Afore Capital, Alumni Ventures, and Kraken Ventures. The latest round follows Rally’s $6M seed funding round in 2021.
The fresh capital infusion will help Rally further strengthen its team, penetrate enterprise and international markets, and expand integrations beyond Swell and BigCommerce with other commerce platforms such as Salesforce Commerce Cloud and commerce tools and payment methods such as Affirm and AfterPay.
Rally’s cutting-edge checkout solution gives merchants the freedom to design and implement a bespoke checkout that works best for their teams. The platform offers e-commerce businesses a one-click checkout solution as well as tools for post-purchase offers, that have proven to reduce the industry average 70% cart abandonment rate and increase revenue by over 12%.
“Our guiding north star is to place power back into the hands of merchants and developers, period,” Gal said. “We are building an e-commerce ecosystem for the future – where business owners and developers are placed back in control of their brand. Right now, merchants are forced to accept the existing checkouts provided to them by underlying platforms, and app developers are tirelessly bound to the legacy platforms they build for. We believe there is a better way to do things – placing the merchant back in the driver’s seat and setting them up for success.”
Co-founders Jordan Gal & Rok Knez previously ran CartHook, a checkout solution that processed nearly $3B in transactions for Shopify merchants. They launched Rally in 2020 after seeing demand from merchants for a next-generation checkout platform outside of the Shopify ecosystem. Their launch came at a time during the e-commerce boom when merchants demanded a more customizable solution as well as greater control over the checkout process to scale and provide consumers with a better shopping experience.
Leveraging years of checkout experience, Jordan and Rok have consistently grown the number of Rally Pay vaulted shoppers by high single-digit percentages on a weekly basis with nearly 50 e-commerce merchants of all sizes as well as nearly doubling the size of its team in the last year.