Profishop

About Profishop

PROFISHOP GmbH operates as a B2B e-procurement platform targeting professional users within the construction, industrial, and trade sectors across Europe and, more recently, the United States. The company was founded in Bremen, Germany, in 2012 by the husband-and-wife team Arasch Jalali, who serves as CEO, and Anna Hoffmann, the CTO. The venture began as a project at their kitchen table, later rebranding from its original name, Crowdshop.eu, to Profishop.de in 2017 to better reflect its professional B2B focus.

The firm's business model is centered on a dropshipping approach, functioning as an intermediary platform without maintaining its own physical inventory. This structure allows PROFISHOP to connect its client base of small to medium-sized enterprises, freelancers, and public institutions directly with manufacturers. By eliminating warehousing and intermediate trade costs, the company can offer competitive pricing on a vast product range. Revenue is generated through this online marketplace, and the company has demonstrated significant growth, reporting revenues of $100 million in 2021, a 100% increase from the previous year.

PROFISHOP provides access to a catalog of approximately 1.5 million products, spanning categories such as operating equipment, construction materials, tools, electronics, and office supplies. The platform serves as a centralized purchasing point, simplifying the procurement process for businesses by consolidating needs into a single supplier relationship and invoice. A key feature is the ability for customers to request quotes for items not listed in the standard catalog, with a promise of a response within 48 hours. The company's value proposition lies in offering a comprehensive product selection, streamlined purchasing, and cost savings derived from its asset-light business model.

The company has successfully attracted investor capital to fuel its expansion. A notable milestone was securing a $35 million Series A funding round in March 2022, led by Tiger Global Management. This capital is intended for further development of the technology platform and to support international expansion. As of early 2022, PROFISHOP was active in 13 countries and employed over 120 people.