The auction site is adding millions to its war chest in the battle for online auctions.
Last spring Breakit(article in Swedish) reported about the auction site Barnebys which lets its users browse antiques and art from traditional auctioneers.
The company hopes to help auctioneers to reach more customers online and give the preexisting customer base a wider range of products.
The idea might remind some of travelsites like Trivago and Momondo or price comparison sites like Prisjakt. The business model is based on clickthrough rather than selling the objects themselves. Right now the company gets 2 Swedish Krona(23 cents) per click in Sweden and in Britain, which is the company’s biggest market, it gets 80 cents for each click.
Breakit revealed last week that the company is shifting gear and has raised $4.3 million. According to Breakit’s sources the company has raised the venture capital from Industrifonden along with Active Ventures, Howsat and the Wattin family’s investment company Inbox Capital.
One problem for the company and auctioneers in general is that most of them still don’t have mobile friendly sites. That’s a big problem because half of the traffic through Barnebys is mobile.
“Our greatest challenge is that the infrastructure in this industry is so bad. The auction sites don’t have mobile friendly sites yet. If they did, they would see an increased conversion from our service”, co-founder Christopher Barnekow told Breakit last spring.
The company has previously raised 30 million SEK (about $3.5 million with todays exchange rates) form Industrifonden and Active Venture Partners, among others.