The COVID-19 pandemic forced a large segment of the global workforce (both in the government and private sectors) to adopt a massive remote-work setup on a scale never seen before. This boosted the ecommerce business as many people turned to the internet and online stores to carry out most of their purchases. As a result, ecommerce sales are on the rise, with global ecommerce growth rates hitting 25.7 percent, from $2.3 billion in 2018 to $4.5 billion by the end of this year.
This massive growth of online sales is expected to boost the ecommerce fulfillment services market, and this is the reason why an ecommerce startup called Deliverr is raising funds.
Deliverr, a San Francisco, California-based e-commerce fulfillment solution provider, has announced that it has raised $250 million in a Series E funding round. This latest investment round, which pushes the valuation to $2 billion, was led by new investor Tiger Global with participation from existing investors Activant, 8VC, Brookfield Technology Partners, GLP, and Coatue.
According to VentureBeat, the company plans to use the newly-raised capital to accelerate commercial operations and expand its next-day fulfillment service, which now includes merchants of all sizes across the United States.
Founded in 2017 and based in San Francisco, California, Deliverr provides FBA-like multi-channel fulfillment services to ecommerce merchants on leading marketplace platforms like Amazon, Shopify, Walmart, eBay, Target, and more. Deliverr uses a combination of predictive analytics and machine learning technology to anticipate demand for products based on geography, demographics, and other variables. The company’s fulfillment solution networks include a vast network of up to 80 warehouses, cross-docks, and sort centers.
Deliverr competes with the likes of fulfillment startup Flowspace, ShipBob, Shippo, among others.