Flowspace, a California-based on-demand warehousing and fulfillment startup, announced its Series A investment raise of $12 million, which was led by Canvas Ventures. The round also saw participation from Moment Ventures, 1984 Ventures and Y Combinator. In total, Flowspace has raised $15.5 million since its inception in 2017.
Flowspace helps small- and mid-sized companies by sourcing warehousing space for their needs. This allows businesses to scale up rapidly and concentrate on gaining more customers, rather than stagnate with the burden of finding warehouses to stock products.
Ben Eachus, the CEO of Flowspace, explained that the startup can identify warehouse space based on their client’s requirements – typically within a day. That apart, the fulfillment space also comes without the long technical integration process that is usually required by warehouses before they stock products.
The company has automated the process of sourcing warehouse space, and handles the storage, transportation and services of inventory on a per-month basis. While on the Flowspace platform, clients gain access to hundreds of professionally operated warehouses that are strategically located throughout the U.S. Customers can then select the warehouse that is best for them, based on location and their inventory needs.
“We have had rapid growth since our launch in 2017. Flowspace now supports hundreds of warehouse partners and merchants who are using our software platform,” said Eachus. “The feedback has been positive from our customers as we’ve saved them time when finding and launching into new facilities. Our customers find our product easy to use and our customer support to be excellent.”
Flowspace’s cloud-based inventory management software is supported by its spread of warehouses and fulfillment centers that touch every major U.S. market, and provide flexible monthly subscriptions for clients that are expanding quickly and do not have a definitive answer about the inventory volume they will require down the line.
“Flowspace customers – enterprise, small- and mid-sized businesses, importers, manufacturers, and e-commerce retailers – rave about its platform and best-in-class service. The company has truly transformed every customer’s approach to warehousing and fulfillment, especially for those that have multi-channel needs,” said Paul Hsiao, general partner at Canvas Ventures and Flowspace’s newest board member. “I’ve been impressed with the team, their pace of innovation and ability to scale. Flowspace continues to raise customer expectations for the space every day and is well-positioned to lead this category.”
The start-up will channel the newly raised investment to bolster its software platform. Eachus stated that Flowspace will add features as requested by the company’s warehouse partners, which will enable them to run operations more efficiently.
“We will be releasing tools to enable our merchant clients to more effectively manage their inventory and omnichannel orders,” said Eachus. “We will invest in our software by making it the easiest to use fulfillment software in the market. We also plan to invest in marketing and support to provide best-in-class service to our clients and warehouse partners.”