10CMS, A developer of interactive e-commerce software, is closing an investment round of €600,000 and plans to add further jobs at the company before the end of the year.
The company claims its software can improve the rates of website visitors buying a product. The software has been three years in development and is responding to a need for retailers to stand out in a more competitive online market.
10CMS has more than 40 well-known retailers as customers, including marquee names such as L.K.Bennett, Jimmy Choo, Heal’s, A wear, Dreams, Kiddicare.com and Anthropologie.
The software has a “product hotspot” feature that shows more information about the product when a customer hovers their mouse over it. 10CMS co-founder Fergal O’Mullane says this type of site is more likely to prompt prospective buyers to make a purchase.
“You can’t just put together a website, throw on your product and expect people to buy,” he says. “When retailers lose customers, a lot of times it’s because they see something on the homepage and they can’t find it easily in the site.”
Mr O’Mullane claims the product is more cost-effective for retailers because they don’t have to go to a web development agency to create new content. Instead they can use content from other marketing materials such as brochures, presented to the visitor in an interactive way.
The latest version of 10CMS is due for release next month and it will include tools for mobile web browsers as well as allowing online shops to hook into social media sites like Facebook.
10CMS is projecting growth to more than 100 customers in the next six months. “We have doubled our forecasts this year to date,” O’Mullane adds.
The company sells through e-commerce providers and has focused initially on the UK market, which is one of the largest e-commerce markets in Europe.
It has formed partnerships with 10 of the leading UK e-commerce developers and it earns revenue based on annual licence fees for its software.
10CMS is forecasting sales of more than €800,000 by this year, increasing to €2.7 million in 2011. O’Mullane says the company aims to break even by the end of this year or the first quarter of next year.
It employs 16 people, including contractors, between a product support and operations office in Cork and a London site from where product development and sales are managed. Based on growth to date, O’Mullane says the company plans to have 20 staff or more by the end of the year.
10CMS is backed by Enterprise Ireland, Sadlier Reilly Capital and private investors, having already raised €1 million. For the latest €600,000 funding round, it is in discussions with private investors.
The funding will be used to continue developing the product, as well as opening a New York office to be close to major US fashion brands.
