StarApps expands its Shopify ecosystem with AppMaker acquisition
Global e-commerce sales are forecast to reach a staggering $5.24 trillion by 2026, with direct-to-consumer and mobile commerce acting as the fastest-growing segments in the retail industry. Despite this massive growth, brands are facing an increasingly expensive challenge, paid customer acquisition costs are skyrocketing every year. To tackle this industry-wide hurdle, bootstrapped Shopify app…
StarApps, a Shopify app developer, has acquired AppMaker, an enterprise mobile app platform, in an all-cash deal. The acquisition is intended to expand StarApps' ecosystem and tackle the challenge of high customer acquisition costs in the e-commerce industry. StarApps, founded in 2016 and bootstrapped, has generated over $6 million in annual recurring revenue and serves more than 30,000 merchants, including 2,500 Shopify Plus stores.
The mobile commerce segment is expected to grow rapidly, with global e-commerce sales forecasted to reach $5.24 trillion by 2026. With Shopify accounting for 14% of all U.S. e-commerce sales, ecosystem partners like StarApps play a crucial role in connecting brands with buyers. As advertising becomes increasingly expensive, businesses are shifting their budgets toward retention strategies and native mobile apps, which consistently drive the strongest repeat purchase behaviors for brands.
AppMaker, founded in 2016, powers native mobile applications for over 200 enterprise brands, processing more than $100 million in annual gross merchandise value. Its retention capabilities are exceptional, with brands reporting conversion rates three times higher, a 28% revenue growth in the first year, and a fivefold increase in customer lifetime value. Additionally, using AppMaker has enabled businesses to reduce advertising spend by up to 30%.
Historically, Shopify merchants faced a dilemma between using templated mobile apps with limited flexibility or expensive custom builds. AppMaker's open architecture model allows brands to build custom features directly on top of the platform, preventing long wait times for bespoke feature implementation. Founders of both companies believe the acquisition is the perfect fit for StarApps' enterprise-level goals and will help develop software that bridges the gap between web and mobile, creating faster, highly personalized, and high-converting shopping experiences.
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