Fetch Raises $60M to Fuel Rapid Growth | Austin Tech News

Fetch Package Secures $50 Million in Series C Funding

Fetch Package, a company specializing in last-mile package delivery for apartment communities, has successfully completed a Series C funding round, raising $50 million. Additionally, a $10 million venture debt facility has been secured.

Company Origins and Early Challenges

Michael Patton established Fetch in May 2016, motivated by personal frustrations with package loss within his own apartment complex.

He conducted research into existing package handling procedures within communities. Patton discovered that some locations were processing between 300 and 400 packages weekly, creating a substantial workload for staff, as he explained to TechCrunch.

Recognizing the need for improvement, particularly with the growth of e-commerce, he envisioned a scalable solution capable of managing the increasing volume of deliveries.

Growth and Expansion

Fetch initiated operations in Dallas in February 2017, aiming to resolve the prevalent “package problem” faced by apartment communities.

The company subsequently relocated its headquarters to Austin and experienced significant expansion. By the close of 2017, Fetch was providing service to approximately 2,000 apartment units in the Dallas region.

Over the subsequent three years, this figure increased to nearly 150,000 units across 25 warehouses located in 15 different markets.

Current Market Position and Key Partnerships

Currently, Fetch has contracts covering just over 200,000 units, representing around 700 communities nationwide.

The company collaborates with seven of the top ten nationally recognized apartment management companies, alongside “a majority of the largest owners and developers.”

In December of last year, a national preferred vendor agreement was established with Greystar, a major player in property management.

Fetch facilitated the delivery of approximately 3.5 million packages in 2020 and reached 2.5 million deliveries by June 2021. The company projects exceeding 8 million deliveries by the year's end.

Financial Performance and Investment Details

While specific revenue figures remain undisclosed, Michael Patton reports that the company’s annual recurring revenue (ARR) tripled in 2020.

GAAP revenue experienced a sixfold increase year-over-year. Fetch has seen “record sales” over the past two years and anticipates surpassing 300,000 units by the end of the current year.

Austin-based Ocelot Capital spearheaded the Series C funding round, with participation from Greenpoint Partners, Alpaca VC, and Rose Park Advisors.

Existing investors, including Iron Gate Capital, Signal Peak Ventures, Venn Ventures, Pando Ventures, and Seamless, also contributed to the round.

A $10 million venture debt facility was provided by Signature Bank, supplementing the equity raise.

This latest funding brings Fetch’s total funding to over $92 million, tripling its valuation from the $18 million Series B raise completed last August.

Industry Perspective and Competitive Advantage

Andrew Townsend, managing member at Ocelot Capital, believes Fetch is addressing “a major bottleneck within the supply chain that is often overlooked.”

He anticipates continued growth in e-commerce delivery volume and positions Fetch as the only scalable solution for multifamily operators.

Townsend highlights Fetch’s ability to efficiently manage fluctuations in package volume, a capability lacking in traditional parcel storage systems.

Furthermore, the company offers apartment residents the “unique convenience of on-demand doorstep delivery” tailored to their individual schedules.

Operational Model and Future Plans

Fetch utilizes a unique code identifier for all packages delivered to its client communities.

The company then coordinates scheduled, direct-to-door delivery with residents through its mobile application, accommodating their preferred timeframes.

This approach relieves property management of package handling responsibilities and provides residents with a valuable amenity, according to Michael Patton.

Fetch employs a workforce comprised of both W2 employees and 1099 contractors. Employee numbers have increased by 50% since mid-last year, currently totaling around 350.

In addition to these employees, the company utilizes “thousands” of independent contractors/gig economy workers as drivers across all its markets.

The newly acquired capital will be primarily allocated to expanding into new markets, including South Florida, Philadelphia, San Francisco, Nashville, Minneapolis, and several other locations over the next two quarters.

The company plans to launch approximately 20 new markets within the next 18 months, and will also invest in its technology infrastructure and operational capabilities.