Litium has acquired the rights to dropshipping software from Droshi AB. The software will be integrated into Litium’s product offering for advanced digital commerce.
Dropshipping is a means of selling physical products without having to maintain them in stock. A dropshipping retailer delivers sold goods directly from the distributor or manufacturer to the end customer, thereby reducing the costs of stock and distribution. This business model is common in e-commerce, both in its purest form and as a model for expanding the product range.
“Droshi has built an impressive product that will effectively enhance Litium’s core offering in terms of time and cost. Dropshipping is an efficient commercial tool for increasing digital commerce sales and profitability. The solution is attractive not only to existing customers, but also to new ones and has the same technical framework as Litium’s platform, simplifying technical integration. We are extremely satisfied with this deal and see the benefits of each company being able to freely develop the product, each in their own corner,” says Patrik Settlin, CEO of Litium.
Litium paid Droshi AB a one-time fee for an unrestricted and perpetual license of the software, to be applied however Litium sees fit.
For the sake of business, the parties have chosen to not divulge the fee amount. In the short and mid term, the acquisition will have a limited impact on Litium’s cash flow. In the long term, Litium expects the acquired software to have a positive impact on revenues and gross margins.
Litium AB (publ) is a cloud-based e-commerce platform that helps accelerate sales for large and medium-sized companies within both B2B and B2C. Lindex, Tingstad and Jollyroom are some of Litium's customers, who have a total turnover of more than SEK 10 billion annually online. Litium acts through its partner network in the Nordic market and is listed on the Nasdaq First North Growth Market in Stockholm, Sweden. www.litium.com