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Warehouse firm Deliverr snags $170 million in funding

Round includes $135 million in Series D funding and a $35 million convertible note

Deliverr snags millions in new funding (Photo:Shutterstock)

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.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.