Fulfillment Services Startup Deliverr Nabs $250 Million to Continue Serving Amazon and Walmart

By Adriaan Brits Monday, November 22, 2021

Deliverr, a California-based startup company that provides shipping services to ecommerce businesses, announced that it secured $250 million in a Series E business funding round led by Tiger Global.

Woman in a warehouse holding a tablet.

More Than Doubling Its Business Valuation

Existing business investors 8VC, Activant, GLP, Brookfield Technology Partners, and Coatue, also took part in the Series E funding.

The startup company plans to use the new funding to expedite commercial operations and expand its next-day delivery service to a broader range of ecommerce businesses across the US. Deliverr counts Shopify, Walmart, Amazon, eBay, and Target as its larger customers.

The startup company said that its valuation more than doubled to $2 billion from its previous funding round. The startup company is the highest-valued provider of fulfillment and logistics services for ecommerce merchants.

“The most effective way to address supply chain congestion is to move inventory closer to the end customer. Deliverr is the only company working to solve this problem through stronger inventory placement while leveraging cutting-edge machine learning and optimization technology to build a smarter fulfillment network,” said Harish Abbott, co-founder and chief executive officer of Deliverr.

“With this new capital, Deliverr will focus on scaling next-day fulfillment for e-commerce merchants and grow our world-class team of engineers, data scientists and operations experts,” Abbott added.

Merchants that use Deliverr’s platform have seen a 90% growth year-on-year in comparison with standard ecommerce growth rates, according to the startup company. Deliverr’s ecommerce fulfillment allows clients to boost business sales while keeping low advertising expenses.

The startup company utilizes predictive demographics and geography analytics to make demand estimates for products. Deliverr runs a network of over 80 warehouses, cross-docks, and sort centers. It also stocks its items near areas of demand. This way, the fulfillment business significantly reduces the time needed to deliver the products.

In spite of persisting global supply chain challenges, the demand for next-day and two-day delivery services continues to increase in the retail sector.

"Deliverr is well-positioned to lead the ecommerce fulfillment space as several market forces converge," said John Curtius, a partner at Tiger Global.

Curtius added that even though the COVID-19 pandemic has weighed on the global supply chain, online sales volumes and consumer demand are headed for new highs. Thanks to its top-notch fulfillment infrastructure and technology, Deliverr is able to tackle issues related to the logistics chain, provide next-day fulfillment, and help merchants save money, he added.

Since it was founded in 2017, Deliverr is expected to hit over $2.5 billion in gross merchandise value (GMV) run-rate by the end of the year.

The entire ecommerce delivery services sector is expected to reach a valuation of $86.4 billion by the end of the year, which could nearly double to $168.7 billion by 2028.

The ecommerce business sector has attracted a significant amount of capital recently. Startup companies that offer fulfillment services like Fabric, Sendbox, and ShipBlu, have all raised funding within the past few months.

Summary

Ecommerce fulfillment services provider Deliverr announced today that it raised $250 million in a Series E business funding round led by Tiger Global.


About the Author

Headshot of Adriaan Brits

An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.

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