Flexe, which provides outsourced warehousing and fulfillment services by matching excess provider capacity with shipper needs through its programmatic logistics platform, has reached a $1 billion-plus valuation with its latest $119 million Series D round.
The round included participation from BlackRock Private Equity Partners, joined by previous investors Activate Capital, Madrona Ventures, Prologis Ventures, Redpoint Ventures, T. Rowe Price Associates, Inc. and T. Rowe Price Investment Management, Inc., and Tiger Global.
This brings Flexe’s total raised to date to $253 million, the most recent being a $70 million Series C round in December 2020.
The company claims six of the ten largest retailers and four of the five largest consumer packaged goods companies as clients, using its programmatic logistics services to support their supply chain operations.
“Flexe uniquely helps enterprise retailers and brands solve big supply chain challenges and excel in uncertain environments,” said Samir Menon, a director at BlackRock Private Equity Partners in a release. “Flexe has demonstrated that programmatic logistics deliver value for the world’s most demanding companies. We’re pleased to partner with a category creator that is transforming a massive industry.”
Flexe is asset light in that it doesn’t own or manage any of the facilities used by its customers, who include large retailers and brands including Ace Hardware, BJ’s Wholesale Club, Ralph Lauren, Staples and Walmart.
The company provides its clients with access to inventory and order visibility, as well as a range of LTL, parcel and last-mile carriers through its platform, in addition to short-term fulfillment space. They can expand and contract the services as demand dictates without the high fixed costs of owning or leasing their facilities or signing a long-term contract with a 3PL, many of whom are Flexe partners.
“Despite changing economic conditions, Flexe added nearly as many enterprise customers in the first six months of 2022 as it did all of last year and continues to see strong demand,” said Karl Siebrecht, Flexe Co-Founder and CEO. “Our model allows organizations to scale fast in strong economic environments and reduce risk, capital investment and long-term commitments when they face uncertainty.”