Developers with a vested interest in the development of e-commerce have always relied on Magento and its offerings. Magento is among the top-notch e-commerce platforms, and it enjoys this position because of its continuous efforts to offer the best solutions to its users.
A user is primarily concerned about the features, and Magento is committed to delivering the best features. But have you ever wondered how Magento manages to stay on top? Reaching and staying on top requires a dedicated team, strong financial backing, and a vision that can foresee the future.
The Ownership Timeline of Magento
Magento’s ownership has changed a few times ever since it was first released. Here is a brief timeline that will tell you all that has gone by in terms of the acquisitions and selling stakes:
- 2008 — The first version of Magento was developed and released by Varien Inc.
- 2010 — A share in Magento’s stakes was sold to eBay.
- 2011 — eBay completely acquired Magento.
- 2015 — As a part of eBay Enterprise, eBay sold Magento to a group comprising investment firms.
The Financial Backing Behind Magento
Magento is now headed by Mark Lavelle and is funded by the investment firms that acquired it in 2015. The investment firms include:
- Sterling Partners
- Longview Asset Management and Innotrac Corp.
- Permira Funds and wholly owned associates
The Key Expansion Events
With a vision that encompasses the future of e-commerce, Magento is on a path to expansion. Since its 2015 acquisition, Magento has taken a few steps to emerge as a strong global e-commerce platform.
- 2016 — Magento acquired RJ Metrics, a start-up company dealing in advanced analytics.
- 2017 — Hillhouse Capital Group sets aside 250 million USD for Magento’s aspiration to tap the potential Asian market.
Magento Has a Huge Market in Asian Countries
Asia is a hub of developing countries such as India, China, etc., which have a huge market for online platforms that cater to a wide variety of needs. There are already a host of providers that offer Magento developers from India. With the acquired funding, Magento aims to offer customized solutions to suit the demands of e-commerce platforms in the region.
Another strategic perspective is that Hillhouse Capital Group is a prominent name in China. Magento’s association with a prominent local company will lend it an inherent reliability. In addition, Magento can also benefit from the regional knowledge that the experts at Hillhouse Capital Group can provide.
The Expected and Speculated Plan
The experts believe that association with eBay was not a great phase for Magento because eBay had a different focus. The split from eBay is good for Magento, but it would have to work to compete with established players.
Acquiring funds is one thing, but using it judiciously is another. Within no time of the announcement regarding the funds, experts started speculating the way Magento would utilize the funds. Focus on Research and Development (R&D) was the main expectation.
We believe that Magento would need to research the trends and gaps in the targeted market before releasing or developing focused solutions. It also includes identifying competitors and evaluating their solutions in comparison to what Magento will offer.
What is the Future of Magento?
The events in 2016 and early 2017 have painted a rosy picture of Magento’s future, and there seems to be a lot more going on at the company. The focus on Asian countries has already created a need for Magento development in India. The fund flow and plan look promising, and now, only time can tell if Magento will achieve what it dreams of.
Recent Blogs
Categories
