Cloud fulfillment platform Logiwa announced Wednesday it has raised $16.4 million in Series B funding led by NewRoad Capital Partners with participation from existing investors — including Valor Siren Ventures, Runway Venture Partners, Spider Capital and Launch Capital — to continue building out its technology solution powering the shipping operations for direct-to-consumer (D2C) businesses.
The fulfillment company has raised $28.9 million since international e-commerce software expert Erhan Musaoglu founded it in 2004.
Logiwa’s omnichannel e-commerce platform comes at a perfect time as sales hit $870 billion in the United States in 2021. That’s a 14.2% increase since 2020 and a 50.5% jump since 2019, according to the Department of Commerce Retail Indicators Division.
“The next winners in e-commerce will be those who best manage their supply chain and order fulfillment operations,” Musaoglu said. “A high bar for delivery speed and accuracy has been set by Amazon and other giant online retailers, and the field of competition is shifting from the online shopping experience to the order delivery experience. Logiwa WMS software helps both brands and 3PLs survive and thrive in this new environment. With Logiwa, they can turn DTC fulfillment excellence into a competitive advantage.”
|Funding amount||$16.4 million|
|Funding round||Series B|
|Lead investor||NewRoad Capital Partners|
|Secondary investors||Valor Siren Ventures, Runaway Venture Partners, Spider Capital and Launch Capital|
|Business goals for the round||Build upon its existing software to offer various solutions for its e-commb|
|Total funding||$28.9 million|
According to Logiwa, that competitive advantage includes three times more orders shipped after three months of using the software and a 40% increase in labor efficiency, particularly in the dwindling warehouse labor market where 73% of operators said they were having problems attracting employees.
“As e-commerce order volumes and consumer expectations continue to grow, it’s clear that innovative solutions will be needed to keep up with the needs of DTC warehousing,” said Chris Sultemeier, operating partner at NewRoad Capital Partners and former EVP of logistics at Walmart, who announced he will join Logiwa’s board of directors. “Logiwa’s WMS is very well suited for high-volume operations, and their commitment to innovation makes them an excellent partner for the future as retail markets continue to evolve.”
With its new capital infusion, Logiwa plans to invest in new automation algorithms and advanced analytics for customers as well as growing its current list of integration partners that already includes companies such as Amazon, Shopify, NetSuite, Deliverr, FedEx, DHL and more than 200 others.