Warehouse and delivery startup Deliverr said Wednesday it has raised an additional $170 million, including a $135 million Series D funding round led by venture capital firm Coatue and a $35 million convertible note led by Brookfield Technology Partners. Existing investors such as 8VC, Activant Capital and GLP also participated, San Francisco-based Deliverr said.
The latest round brings to $240 million the total capital raised by the company, which positions itself as an “asset-light” warehouse and next-day delivery provider that handles warehousing, storage and delivery for merchants that lack the resources and desire to do it themselves. Deliverr owns no warehouses or delivery vehicles and has no labor on its payroll. Instead, it contracts with warehouse operators for space of varying sizes and does the same with delivery partners. Deliverr uses its own technology to underpin the operation.
Deliverr, which currently operates out of 52 U.S. warehouse facilities, will use the new funding to expand its network in size and throughput, co-founder Michael Krakaris said in a phone interview. The company doubled its warehouse square footage in 2020 and plans to increase that tenfold during 2021, Krakaris said.
Deliverr also plans to raise its requirements for warehouse partnerships, Krakaris said. It wants to work with warehouse partners that can provide at least 50,000 square feet of space and process at least 5,000 orders per day, he said. Deliverr typically leases space from small to midsize private warehousing firms. A core part of its value proposition is to supply warehouse operators with merchant business and then handle all the back-office responsibilities on the warehouse operators’ behalf.
terrance
so if he has no company vechile how is shipping all the goods and has no warehouse?