Stord, an Atlanta, Georgia-based provider of freight and warehousing services, today announced that it’s raised $12.3 million in series A funding led by Kleiner Perkins, which comes on the heels of a seed round totaling $2.6 million and brings its total raised to $15 million.
CEO and cofounder Sean Henry said the capital infusion will drive Stord’s expansion to new markets and further its platform integration capabilities, following a year in which revenue grew by 9.47 times. Specifically, Stord will move into new office space and hire more than 50 new employees by 2020, coinciding with the planned expansion of its nationwide logistics network to new warehouses, transportation, and other partners.
“The challenge with distribution models today is that they lack the speed, reliability, and affordability that customers want, whether they’re a retailer ordering new stock from a supplier or a … brand replenishing raw materials. And distribution is an operational nightmare for shippers — manual, rigid, opaque,” said Henry, who cofounded Stord with fellow Georgia Institute of Technology graduate and CTO Jacob Boudreau in 2015. “We believe customers and shippers deserve a better experience. That’s why our mission is to empower shippers to move products brilliantly … We aim to build a staple technology brand in Atlanta — providing career opportunities and a great place to work for the talented and innovative people in our vibrant technology community,”
Stord operates on a networked distribution model for storage and shipping — one that combines strategic partnerships and bespoke technologies to provide shippers in retail, consumer packaged goods, manufacturing, food and beverage, medical, industrial, and telecom a unified, streamlined way to haul goods. Through its cloud-hosted dashboard, companies can place, manage, and pay for orders through vetted third-party facilities and freight routes comprising a range of warehouse types and product certifications, with high-volume distribution hubs in Oakland, Dallas, Los Angeles, New York, and New Jersey. On the freight and transportation front, Stord offers drayage, refrigeration, and more, and its partners handle case picking and shipment consolidation where and when necessary.
Throughout the shipping process, customers can pull up parcels’ geographic locations, along with their estimated dates of pickup and arrival. Stord surfaces the relevant paperwork by facility, customer, or project and automatically generates receipt and delivery notifications, all while identifying in real time opportunities for improvement and potential bottlenecks.
Stord claims its solution saves an average of 25 minutes of emails and calls for every order, and that it boosts on-shipment rates, decreases damage and error rates, and increases last-mile savings by an average of 62.5%, 33%, and 34.6%, respectively. Moreover, it says that to date, its 248 logistics partners have helped to move 1.8 million units — $200 million in product each month — through its 51.6 million square feet of collective warehouse space.
“We believe there’s a massive opportunity to build a software-powered virtual network of warehouses,” said Susa Ventures general partner Chad Byers. “By aggregating many independent operators, this can become the world’s largest distribution network. The company building this network would deliver customers and asset owners unparalleled efficiency, transparency and economics. This can be a $100 billion company. We believe Stord will be this company.”
Other Stord investors include Susa Ventures, Dynamo, Revolution’s Rise of the Rest Seed Fund, and Engage, along with individual investors Chris Klaus and Tom Noonan.