In February, Modest, the latest startup from former Obama CTO Harper Reed, officially debuted after two years in stealth mode. And just six months later, the company has been acquired.
Today, PayPal announced that it has bought Modest, a platform for developing mobile e-commerce apps and solutions. (The company allows retailers to easily embed ‘buy’ buttons in their own apps). This marks the first acquisition for PayPal since spinning out from eBay in July.
“At PayPal we are always striving to innovate commerce experiences and make them better for both merchants and shoppers,” said Bill Ready, Senior PayPal’s Senior VP and Global Head of Merchant and Next-Generation Commerce. “Today, we’re excited to take another big step in this direction as we have agreed to acquire Modest. Modest allows merchants to offer an end-to-end experience that makes selling on any platform easier and simpler. They have built exceptional mobile technology and bring deep talent in contextual commerce to PayPal.”
Founded in 2012 by Reed and Dylan Richard, another former engineer with the Obama 2012 re-election campaign, Modest allows PayPal to remain a leader in “contextual commerce,” a relatively new shopping category that covers purchases that occur when a user discovers an item on social media and immediately buys it.
This is also the payments processors second major acquisition of a Chicago tech company. In 2013, the PayPal purchased Braintree for $800M. (A leading example of contextual commerce is the Pintrest ‘Buy’ button, which is actually powered by Braintree).
According to Fortune, Modest will be part of the Braintree business.
Explained Ready, “For merchants, this means PayPal will be able to offer a complete commerce solution (payments and order management) to help them add contextual commerce channels to the ways that they sell to their customers. For consumers it will mean seamless, simpler, and safer ways to buy the things they want, anywhere they discover them.”
No financial terms of the deal were disclosed.