E-commerce fulfillment technology company Deliverr announced Monday it has reached a $2 billion valuation after closing its $250 million series E round led by its newest investor, Tiger Global. Its existing investors, 8VC, Activant, GLP Capital Partners, Brookfield Technology Partners and Coatue, participated in the round as well.
Deliverr has raised a total of $490 million since 2018, supplying competitive fulfilment services to merchants that use marketplace platforms to sell its products, including Shopify, Walmart, Amazon, Target and eBay.
These fulfillment services have Deliverr set to reach a $2.5 billion gross merchandise volume run-rate by the end of 2021.
According to the company, its merchants’ e-commerce purchases grew 90% year-over-year, with many end consumers requesting next-day or two-day delivery options.
Deliverr executives explained that, while the company has created a network placing itself within 100 miles of half the U.S. population, its new capital investment will partially be used to add to its current 80 warehouses to provide better next-day delivery services.
“The most effective way to address supply chain congestion is to move inventory closer to the end customer. Deliverr is 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,” said co-founder and CEO Harish Abbott.
|Funding amount||$250 million|
|Funding round||Series E|
|Lead investor||Tiger Global|
|Secondary investors||8VC, Activant, GLP Capital Partners, Brookfield Technology Partners and Coatue|
|Business goals for the round||Scale fulfillment services network, add engineers, data scientists and operations experts.|
|Post-money valuation||$2 billion|
|Total funding||$490 million|
Abbott also said the company will continue to add engineers, data scientists and operations experts to its team to improve its current predictive analytic tools used to anticipate demand and inventory issues for its customers.
“While the global supply chain remains challenged because of the crippling impact of the coronavirus pandemic, online sales volumes and consumer demand for next-day delivery are projected to set new records. No other company, at the cutting-edge of fulfillment infrastructure and technology, will be able to solve for logistics chain disruptions, offer merchants next-day delivery, and save merchant money — all at the same time,” said John Curtius, partner at Tiger Global.