Deliverr Raises $40M to Fuel Two-Day Delivery For Ecommerce Sellers

Deliverr, a startup that uses data and a network of warehouse partners to strategically position inventory and enable fast ecommerce deliveries for its customers, has raised $40 million in a new funding round, bringing its total raised to $70 million.

The funding round was led by Activant Capital, with other investors that included 8VC, GLP and Ryan Petersen, founder and CEO of logistics and supply chain software platform Flexport.

“Deliverr has been busy over the last year,” said Deliverr CEO and co-founder Michael Krakaris in a blog post. “We’ve increased the number of customers that rely on us for fast, affordable fulfillment by 11X and now have thousands of merchants working with us. We’ve also increased our warehouse footprint by 4X in the last year, so more than half of the country now lives within 100 miles of a fulfillment location.”

Through partnerships with owners of warehouses across the country, Deliverr uses shippers’ data and its own algorithm to determine where to place inventory in unused space in high-demand areas for fast delivery, tapping the warehouses’ own fulfillment capabilities. Deliverr integrates with ecommerce marketplaces like Walmart.com, eBay and Shopify.

Deliverr will use new funding to improve its machine learning capabilities for predicting demand and correctly positioning inventory, add new ecommerce marketplace extensions and expand its team at its offices in San Francisco, Chicago and Toronto.

This past holiday season, Deliverr helped Enviro-Log sell tens of thousands of its limited edition KFC Fried Chicken Firelogs on Walmart.com and deliver them by Christmas eve, the company said. Other clients include TushBaby and Bulletproof 360.

Steve Sarracino, Founding Partner of Activant Capital, said Amazon Prime’s two-day promise – now one-day – has fueled consumer expectations that items will near-instantaneously appear on their doorstep.

“While massive businesses like Amazon have the scale and expertise to make this a reality, the vast majority of online retailers simply can’t meet this expectation on their own,” Sarracino said in the blog post. “That’s where Deliverr comes in. (They) fill the gap between what shoppers demand and what online retailers offer. We’re thrilled to be investing in the company because of the critical role they’re going to play as the way we shop continues to evolve.”