Next-generation warehouse and distribution startup STORD has raised $12.3 million in Series A funding, led by Kleiner Perkins, along with existing investors that include Susa Ventures and Dynamo, among others. Since its inception in 2015, the startup has raised a total of $15 million to-date.
Sean Henry, the CEO of STORD, released a statement explaining how distribution channels are currently broken and there is a need to bring visibility to the warehousing and last-mile space. Customer expectations for expedited delivery are now higher than ever, which causes retailers to shift their inventories closer to customers by outsourcing their storage needs to local third-party logistics (3PL) providers.
However, shippers may face difficulties in this arrangement because they are forced to contend with numerous 3PL providers across the country. “As a result, each year shippers move trillions of dollars of goods through an inefficient and costly logistics system that’s held together by manual labor, spreadsheets, phone calls and a myriad of emails,” noted Henry.
The idea behind STORD is to simplify the distribution experience of shippers, which it does by networking with warehouses and carriers. Meanwhile, shippers can interact with every stakeholder in the supply chain via STORD’s platform, which helps them keep a tab on their warehousing and transportation needs.
Supply chain processes work in a very siloed manner, which creates a disconnect at every nodal point, alienating shippers and decreasing delivery efficiency. Digitalization of distribution operations is crucial to facilitate faster delivery cycles. STORD has added a software layer to the process of warehousing and distribution, effectively utilizing its partners to create a flexible and seamless distribution process.
STORD’s Networked Distribution is an amalgamation of logistics expertise, strategy and industry partnership to navigate today’s increasingly complex supply chains. “Combining technology and data, a vast network of 3PLs, and high-touch support and logistics expertise – all managed through a software interface – Networked Distribution gives shippers a central hub with one network, one platform and one partner to simplify all warehousing and transportation,” said Henry.
STORD now moves over $200 million in products monthly, and Henry believes that the new capital raise would help scale its reach even further, as the company expands its network of warehouses, distribution centers and transportation partners. The company is also looking to build its team, intending to hire at least 50 more people before 2020.
“In the last year, we have grown revenue roughly 10 times and expanded our team from five employees in a small co-working space to surpass 30 in our own headquarters in the heart of Atlanta’s thriving technology community,” wrote Henry. “None of this growth would have been possible without the partnership from our incredible customers. STORD has been fortunate to work with some of the leading enterprise brands, helping them move their products globally, while dramatically reducing time per order, last mile costs, damage and errors, and late deliveries.”
Following the financial raise, Ilya Fushman, partner at Kleiner Perkins, will join the board of directors at STORD. “This investment will serve as a great foundation for us to transform the $163 billion warehousing and distribution industry, and impact the $1.5 trillion logistics and supply chain industry as a whole,” stated Henry.
