On-demand warehousing and fulfillment company Flexe said today it has landed $43 million in venture funding and will use the new capital to accelerate the development of its technology platform, more than double the size of its team, and continue to build the on-demand warehousing category.
The "series B" funding was led by Activate Capital and Tiger Global Management, with additional participation from Madrona Venture Group and follow-on investments from current investors Redpoint Ventures, Prologis Ventures, and others. It follows the company's last round of backing in 2016, and brings Seattle-based Flexe to a total of $63.5 million raised to date.
Flexe launched in 2013 with a technology platform offering on-demand warehouse capacity and added e-fulfillment services in 2017. The firm's network now connects goods owners with a network of more than 1,000 warehouses across North America. Flexe does not own or operate any of those DCs, but uses its technology to match warehouse operators with new tenants for short-term, on-demand leases.
On-demand warehousing and fulfillment startup Flowspace operates in a similar way, finding warehouse space for small and medium businesses that need to manage overflow inventory, deploy direct to consumer shipping, or accommodate a seasonal influx in inventory.
Backed by its new funding, Flexe plans to continue its record of fast growth, which includes tripling its revenue in 2018 and releasing an upgrade last week that simplifies integrations, unlocks at-a-glance performance insights, and delivers new levels of operational transparency and traceability, Flexe Co-founder & CEO Karl Siebrecht said in a blog post. "We believe that the inevitable future of logistics is technology-driven and on demand. Our vision of goods moving seamlessly, when and where they're needed, requires this and the services FLEXE provides," Siebrecht said.
In conjunction with the new funding round, Activate Capital Managing Director Raj Atluru will join the Flexe board."We are excited to announce our investment in Flexe, the pioneer of on-demand warehousing, as the company continues to transform the $1.5 trillion global logistics industry," Atluru said in a release. "Flexe presents such clear value for forward-looking businesses who recognize that structural flexibility is a competitive differentiator and key ingredient to winning in the market."