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Posted November 26 , 2021

 

Four months ago, he barely had a product. Now in November, CEO Keith Rabois has set an ambitious goal for his team at OpenStore: close the year on a pace of acquiring one new Shopify-based business each day.

“That will prove to me, when we get there and we’re doing this in an automated way, that we have a mechanical machine that can scale,” Rabois says. “That’s the goal of this quarter. But unfortunately the quarter’s already X days in, so back to work.”

Founded in March, OpenStore is doing everything in a hurry. The startup launched with backing from Founders Fund, where Rabois is an investment partner, and startup studio Atomic. In June, it reached a reported $250 million valuation after raising $30 million in a round led by Khosla Ventures pre-launch. Now, with a team of 35 and more than a dozen merchants rolled up into its platform representing tens of millions in revenue, the Miami-based startup has gone back to the well to make Rabois’ target a reality.

OpenStore has raised $75 million in a Series B funding round led by General Catalyst, the company says. Atomic, Founders Fund and Khosla Ventures, which led its Series A just five months ago, all participated. Following the investment, OpenStore is now valued at $750 million, a source with knowledge tells Forbes – tripling the company’s valuation over the same short period.

Launched after a holiday conversation between Rabois and fellow Miami transplant and friend Jack Abraham, Atomic’s cofounder, OpenStore’s basic premise is to use software to quickly evaluate, price and make offers on “long-tail” merchants selling through the Shopify platform, typically with single-digit millions in annual sales. OpenStore then hopes to leverage its technology and superior resources to bolster the sales of the acquired product lines, eventually combining them under one ecommerce brand that Rabois compares to Wish at all price points, or Wayfair for all shopping verticals.

 

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