Square competitor ShopKeep POS has raised $25 million in new funding, led by Thayer Street Partners with participation from existing investors Canaan Partners, Tribeca Venture Partners, TTV Capital and Contour Venture Partners. It’s now raised a total of $37.2 million.
New York-based ShopKeep sells iPad point-of-sale and retail management software, but unlike Square, Shopify and other startups that are turning the tablet into register, ShopKeep isn’t processing payments. Instead it’s acting more like a traditional point-of-sale equipment vendor – just one that runs its services in the cloud. It’s selling small businesses the transaction tools to ring up sales, track inventory and manage staff. But it’s letting businesses pick their own financial partners to handle the actual card transactions, rather than stay locked down to another all-in-one provider’s set rates.
According to ShopKeep that model has proven popular to 10,000 businesses in the U.S. and Canada so far, tripling both its customer base and revenues between 2012 and 2013. It’s software is now managing $1.8 billion in transactions a year, the company said, compared to the $30 billion Square is processing annually.