Startup Deliverr Draws $170 Million From Investors to Offer Fast Shipping for Online Merchants

By James White Thursday, March 4, 2021

In an ecommerce economy dominated by trillion-dollar titans of the industry like Amazon, startup companies and small businesses looking to peddle their wares online may find the competition to be fierce and intimidating. However, there are businesses out there that seek to level the playing field for those looking to break into the ecommerce game. Startup company Deliverr is helping small businesses and companies offer shipping times that are competitive with Amazon’s Prime Delivery.

On March 3, the startup shipping business announced that the company raised $170 million in new funds, with $135 million coming in a funding round led by global investment manager Coatue and another $35 million coming in the form of a convertible note led by Brookfield Technology Partners. Other investors participating in the fundraising included Activant Capital, 8VC, and GLP. Including the latest batch of investor support, the startup company has raised over $240 million since the founding of the business in 2017.

A warehouse worker checking her tablet.

Fast Shipping for Businesses Large and Small

“Fast delivery is no longer a nice-to-have, with legacy retailers needing to rapidly evolve their ecommerce strategy in order to stay competitive,” said Josh Raffaelli, Managing Partner at Brookfield Technology Partners. “Deliverr’s ability to arm retailers with Prime-like delivery is a game-changer and a big reason why Brookfield, who has extensive relationships across its retail footprint, is thrilled to partner with Deliverr.”

The startup company, founded by entrepreneurs Harish Abbott and Michael Krakaris, is attempting to challenge Jeff Bezos’s ecommerce fulfillment machine by allowing users across a variety of digital marketplaces, including Walmart, eBay, and Facebook Marketplace, to offer free, two-day shipping, much like Amazon. Companies using Deliverr can also sport digital badges by their products that assure the two-day delivery, as well as improve the product’s chance of appearing in a search.

The software designed by the ecommerce startup automatically determines the most cost-effective and fast shipping fulfillment method to deliver the product to the customer. The startup business claims that merchants offering next-day delivery experience a 75% increase in sales.

Fast, Free Delivery Is Expected

As Amazon continues to command the ecommerce market, it also sets the standard for what many consumers expect from digital stores. According to a study by third-party logistics provider Dotcom Distribution, 62% of surveyed shoppers said free shipping was a key motivator in making a purchase. Furthermore, the study found that 57% of shoppers did most of their buying on Amazon.

Taking on the ecommerce giant is no small task; however, Deliverr is determined to make waves in the industry. The business boasts several successful case studies, including comfort product company Huggaroo, which reportedly saw a 307% increase in total sales during the first 30 days of using Deliverr’s service.

About the Author

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James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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