There’s nothing better than going to sleep knowing that a package you’re excited for is arriving the next day. For many, the anticipation might recall childhood memories of the holiday season.
San Francisco-based company Deliverr is working to make sure every package delivered this time of year and beyond lives up to those visions of sugar plums. The unicorn is on a mission to provide e-commerce retailers both big and small with next-day fulfillment capabilities. On Monday, it received a fresh injection of capital to move that mission forward.
The massive Series E round, led by Tiger Global, amounted to a whopping $250 million. The raise boosted Deliverr’s valuation to $2 billion, more than doubling its worth since the company closed on its Series D earlier this year.
Following the massive rise in e-commerce business due to the pandemic, supply chain congestion has become a key concern for online retailers around the world.
“The most effective way to address supply chain congestion is to move inventory closer to the end customer,” Harish Abbott, co-founder and CEO of Deliverr, said in a statement. “[We’re] the only company working to solve this problem through stronger inventory placement, while leveraging cutting-edge machine learning and optimization technology to build a smarter fulfillment network.”
Deliverr ships to over 200 countries and counts corporate giants like Shopify, Amazon, eBay and Target among its long list of customers.
The company charges two fees total for fulfillment and storage. With Deliverr, an order’s fulfillment price depends on the stock keeping unit (SKU) number and the unit amount. Storage pricing is based on the total cubic feet of the product, that way merchants can see exactly what a given SKU will cost upfront.
“Legacy [third-party logistics companies] charge a convoluted assortment of fees that are nearly impossible to decipher,” the company said in a statement. “Convoluted pricing makes it difficult for e-commerce businesses and even large enterprises to understand how much they are actually paying until they receive their first invoice.”
Following the latest raise, the company plans to continue expanding its next-day delivery coverage. Deliverr is on track to provide next-day delivery service to 168 million people across the U.S. by April of 2022, according to the company. As part of this expansion, the company plans to broaden its existing network of warehouses to include temperature-controlled locations for temperature-sensitive products.
Deliverr also plans to add an array of functionalities to its platform including returns processing. With the new feature, merchants won’t have to seek out a separate location to manage returns. Instead, they can rely on Deliverr to meet all of their fulfillment needs.
Over the last year the company tripled the size of its support team. With the fresh capital, Deliverr plans to continue hiring. The company is currently on the lookout for fresh faces across nearly 50 open roles to join its team. Both in-person and remote positions are up for grabs.
Deliverr has raised $490.9 million in venture capital financing to date, according to Crunchbase.
Existing investors 8VC, Activant and Coatue participated in the round, among others.
