Stord, the cloud supply chain company that is attempting to bring an Amazon-like experience to all brands, is the newest unicorn in the supply chain space. The Atlanta-based company announced a $90 million Series D funding round Tuesday evening, bringing total funding in the company to $205 million and a new-money valuation of $1.1 billion.
“The supply chain is the new competitive battleground,” Sean Henry, Stord CEO and co-founder, said in a statement. “Today’s buying expectations set by Amazon and the rise of the omnichannel shopper have placed immense pressure on companies to maintain more nimble and efficient supply chains.”
The funding round was led by Kleiner Perkins with additional participation from Lux Capital, D1 Capital and Palm Tree Crew, and existing investors, including BOND, Dynamo Ventures, Founders Fund, Lineage Logistics, and Susa Ventures.
DTC acquisition
In addition, Stord announced the acquisition of Fulfillment Works, a direct-to-consumer fulfillment provider. Fulfillment Works has three warehouses – one in Reno, Nevada, one in North Haven, Connecticut, and one in Shelton, Connecticut. The company, which has been a family-owned business for more than 50 years, offers EDI order processing, logistics management services, warehouse management, inventory management and value-added services such as customer service and call center outsourcing and customized packaging services.
“This new funding and the outstanding Fulfillment Works team bring us that much closer to our goal of being the last logistics partner businesses will ever need. We want every company to have world-class, Prime-like supply chains,” Henry said.
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STORD provides an end-to-end solution for shippers through a cloud-based platform connected to over 500 warehouses and 20,000 carriers. The company offers national warehouse capacity, digital freight shipping, an integrated logistics network and two-day fulfillment for e-commerce orders from anywhere in the U.S.
“Our goal from day one was to help companies delight their customers through amazing fulfillment service,” said Amy Cooper, CEO and co-founder of Fulfillment Works, said in a statement. “Now, with Stord, we can realize that vision. Stord has built the only end-to-end logistics network that combines the physical infrastructure with software. Together, we will bring new levels of speed, efficiency and flexibility to brands everywhere, just in time for the busy holiday period.”
Rapid growth
Stord has been growing quickly, surpassing $100 million in revenue last year and achieving over 300% growth three consecutive years. Headcount has increased from 160 in 2020 to more than 400 this year and it has added several large clients, including Body Armor, DYPER and Thrasio to its customer list, which also includes omnichannel brands Advance Auto Parts, Dollar General, Schneider Electric, and Veritiv.
Global e-commerce is set to surpass $5 trillion in 2021, while B2B online commerce is expected to reach $20.9 trillion by 2027. B2B e-commerce was already on the rise before COVID-19, but it has accelerated quickly since, sending Stord and other warehouse operators seeking new space.
“I think it was very evident that for suppliers, there was a critical importance of building a digital relationship with their customers,” Mitch Rose, senior vice president of sales for B2B payment company Billtrust, told Modern Shipper. “COVID just took it to another level.”
In August, Stord announced a state-of-the-art fulfillment and innovation hub in Atlanta. The 386,000-square-foot facility will include robotics and automation tools serving customers, but it will also feature an area dedicated to testing new innovations, Henry told Modern Shipper.
In March, STORD announced the closing of a $65 million Series C funding round, which followed by mere months the closing of a $31 million round in December.
Click for more Modern Shipper articles by Brian Straight.
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