StarApps has acquired AppMaker, a native mobile application platform serving more than 200 enterprise brands, in an all-cash transaction. Financial terms were not disclosed.
The acquisition combines StarApps’ distribution across more than 30,000 Shopify merchants with AppMaker’s technology for creating customized mobile commerce experiences. StarApps plans to use the platform to expand beyond web-based product merchandising and support brands across a larger portion of the customer journey.
Founded in 2016, StarApps develops product merchandising applications for the Shopify ecosystem. Its products are used by more than 30,000 merchants, including over 2,500 Shopify Plus stores.
The bootstrapped company generates more than $6 million in annual recurring revenue without outside funding. Its applications help merchants improve product discovery, merchandising and the online shopping experience.
AppMaker enables Shopify merchants to build native mobile applications designed to increase customer retention, repeat purchases and recurring revenue. Its customers collectively process more than $100 million in annual gross merchandise value through their mobile apps.
Gross merchandise value, or GMV, represents the total value of transactions processed through a commerce platform before deductions such as returns, discounts and operating expenses. The metric indicates the scale of purchasing activity supported by AppMaker’s technology.
AppMaker’s open architecture allows merchants, internal technology teams and Shopify development partners to create custom features on top of the platform. This model is intended to give brands greater flexibility than standardized app-building products while reducing the cost and development burden associated with building a mobile application entirely from scratch.
StarApps said the acquisition addresses growing demand from ecommerce brands seeking greater control over customer relationships. As paid advertising and customer acquisition become more expensive, merchants are increasingly investing in owned channels that can support direct communication, loyalty and repeat purchasing.
AppMaker customers have reported conversion rates up to three times higher, revenue growth of 28% within one year and customer lifetime value increases of as much as five times. Customers have also reported advertising spending reductions of up to 30%, although individual results may vary based on the merchant and its implementation.
The transaction gives StarApps a mobile offering that can be introduced to its existing base of Shopify Plus merchants. The company believes mobile commerce is a logical extension for larger brands already using its tools to optimize web-based conversion and product merchandising.
AppMaker will continue supporting its existing customers and development partners. The business will also gain access to StarApps’ broader Shopify distribution, operating resources and merchant relationships.
The companies plan to continue developing software that enables brands to create faster, more personalized and higher-converting shopping experiences across mobile and web channels. The acquisition brings together StarApps’ focus on conversion with AppMaker’s emphasis on retention and repeat revenue.
KEY QUOTES:
“We’ve spent years helping merchants improve how customers shop online. The next step was helping brands nurture stronger relationships after that first purchase. AppMaker, which has achieved an exceptional enterprise platform that complements what we do, allows us to support merchants across a much larger part of the customer journey. AppMaker is the perfect fit for what we’re trying to achieve on an enterprise level.”
Shashank Agrawal, Founder of StarApps
“Mobile apps are the most powerful retention channel a brand can own. Our customers consistently see some of their highest repeat purchase rates and strongest loyalty metrics through their app. Joining forces with StarApps allows us to bring this impact to many more brands, at scale.”
Saleeh K, Founder of AppMaker
