Byrd Secures $19M to Expand Fulfillment Network in Europe

European E-commerce Expansion Fuels Byrd’s €16 Million Funding Round

A significant surge in European e-commerce, projected to increase by 30% this year, continues unabated following the initial boost experienced during the Covid-19 pandemic. Responding to this growth, a startup focused on providing merchants with fulfillment and delivery infrastructure – offering an alternative to Amazon’s fulfillment services – has recently secured funding to broaden its operational reach.

Byrd’s Growth and Expansion Plans

Byrd, a company specializing in software for warehouse and logistics management, alongside offering storage, order picking, and delivery services, has obtained €16 million ($19 million) in a Series B funding round. These funds will facilitate expansion into five additional markets across eastern, northern, and southern Europe, supplementing its existing operations in five countries.

Established in Vienna, Austria in 2016, Byrd currently operates in the UK, Germany, the Netherlands, and France. The company boasts a network of approximately 15 fulfillment centers and serves over 200 customers, including prominent brands like Durex, Freeletics, Scholl, Your Superfoods, and other direct-to-consumer companies in the health, wellness, consumer goods, cosmetics, and fashion sectors.

Investment Details

Mouro Capital, a fintech/e-commerce venture capital firm originating from Santander bank, spearheaded the investment round. Speedinvest, Verve Ventures, Rider Global, and VentureFriends also participated in the funding. While Byrd has not disclosed its current valuation, the company has now raised a total of €26 million to date.

Addressing a Growing Market Need

The market opportunity Byrd is targeting is expanding, not only in size but also in the evolving demands of retailers regarding fulfillment partnerships.

The Complexity of E-commerce

E-commerce, while seemingly straightforward from a consumer perspective – finding products, making purchases, and receiving deliveries – is inherently complex. The processes required to seamlessly deliver this experience are numerous and often beyond the core expertise of smaller retailers.

These retailers may excel at identifying desirable products, but often lack the infrastructure for effective marketing, payment processing, user interface design, personalization, manufacturing, supply chain management, and crucially, logistics and fulfillment. As e-commerce gains prominence, each of these areas presents substantial growth opportunities.

Byrd’s Solution: Outsourced Fulfillment

Retailers frequently turn to third-party technology companies for these specialized services, and Byrd positions itself as an outsourced partner for logistics and fulfillment. The company provides a suite of APIs, enabling retailers to integrate and delegate their entire fulfillment operation to Byrd.

This integration encompasses receiving, storing, and picking items within Byrd’s warehouses, as well as connecting to a retailer’s sales channels, including their own online store and marketplaces like Amazon. Upon order placement, Byrd’s technology leverages a network of shipping providers – including UPS, DHL, Amazon, and postNL – to identify the most cost-effective and efficient delivery method.

Competition and Differentiation

While Byrd is not alone in this space, it faces competition from companies like ShipBob, which recently secured $200 million in funding at a $1 billion valuation. However, a significant competitor looms large: Amazon.

Amazon’s Dominance and Limitations

Amazon has established itself as a comprehensive solution for merchants, offering fulfillment (FBA), storefront visibility, marketing, and more. Its substantial market share often compels merchants to maintain a presence on the platform, even if primarily for customer acquisition, as noted by Petra Dobrocka, co-founder and CCO of Byrd.

However, Amazon’s offerings often lack personalization. As e-retailers mature and face increased competition, they seek ways to differentiate themselves. Byrd addresses this need by allowing customized packaging, creating a branded customer experience, and offering sustainable delivery options.

Prioritizing Quality and Brand Experience

This focus on customization may result in a slower scaling pace for Byrd, but it emphasizes quality and brand control. In a marketplace often characterized by inconsistent quality and a lack of distinct identity, this approach offers a valuable alternative.

“We are an alternative to Amazon, but also quite different. Our sellers are very brand-focused and want to provide a total experience to customers,” Dobrocka explained. “We also cater to smaller customers who value this approach.” Indeed, smaller businesses often receive less attentive service from larger providers, making Byrd’s commitment to equitable treatment a significant advantage.

A Broader Trend in E-commerce Technology

Byrd’s emergence is part of a larger trend of technology companies empowering retailers to establish more unique online presences and personalization. Shogun, an online storefront design platform that also recently received funding, exemplifies this trend.

Strong Growth and Future Prospects

Byrd has experienced substantial growth, with revenues increasing by 300% year-over-year, and currently processes “hundreds of thousands of parcels per month.”

Beyond its core B2C focus, Byrd is exploring opportunities in the B2B sector, with plans to launch services in the coming months. Given Mouro Capital’s involvement, Spain is a likely candidate for its next expansion market.

Investor Confidence

“We are delighted to be leading Byrd’s Series B funding round, particularly as the pandemic has brought the need for flexible, digital e-commerce fulfilment solutions into sharp relief,” stated Manuel Silva Martínez, general partner at Mouro Capital. “Byrd’s end-to-end capabilities, focus on sustainability, and household brand customers set it apart from its competitors, and we look forward to seeing the successes that the geographic expansion enabled by this investment will bring.”