Retail tech investment is solving near- and long-term challenges: Immediate issues like the labor shortage are intensifying the need for automation, from store shelf tracking to self-driving delivery trucks. Meanwhile, Big tech companies and startups alike are pushing ahead with tech to enhance mobile shopping. In the longer term, the potential for tech like blockchain to transform the supply chain, customer loyalty, and product development is growing.

Investment in retail tech hit another record in Q2’21: Funding reached $31.5B, an increase of nearly 4% over Q1’21 and more than triple the amount from Q2’20.

Meanwhile, deals rose 7% over Q1’21.

E-commerce’s continued growth is driving higher valuations and bigger funding rounds: The 5 highestvalued new retail unicorns in Q2’21 span the e-commerce value chain, from online behavior tracking to payments tech to delivery. Meanwhile, the top 5 mega-rounds (deals worth $100M+) in the space all went to ecommerce companies. Food and grocery delivery companies remain major investment targets.

The crowded online shopping tech landscape is also ripe for consolidation: Notable mergers and acquisitions in Q2’21 were concentrated in e-commerce enablement and operations.