Stord Raises $90M, Achieves Unicorn Status & Makes Acquisition

Stord Secures $90 Million in Series D Funding

In 2019, Kleiner Perkins initially invested $12.4 million in Stord’s Series A round. The company’s founders, driven by a strong commitment to their venture, had both opted to leave their educational pursuits to dedicate themselves fully to the business’s expansion.

Rapid Growth and Valuation Increase

Two years later, Stord – an Atlanta-based developer of a cloud supply chain solution – is securing further investment, once again with Kleiner Perkins leading the round.

This latest funding round, a Series D, totals $90 million and values Stord at $1.125 billion post-money. This represents more than a doubling of the $510 million valuation achieved during a $65 million Series C raise just six months prior.

Consistent Funding and Total Investment

This funding event marks Stord’s third since early December 2020. The company initially received Series B funding led by Founders Fund, established by Peter Thiel.

To date, Stord has raised a total of $205 million since its founding in 2015.

Investor Participation

Besides Kleiner Perkins, a diverse group of investors participated in the Series D financing. These include:

• Lux Capital
• D1 Capital
• Palm Tree Crew
• BOND
• Dynamo Ventures
• Founders Fund
• Lineage Logistics
• Susa Ventures

Individual investors also joined the round, including Michael Rubin, Carlos Cashman, Max Mullen, and Will Gaybrick.

Previous investors, such as BoxGroup and Revolution, also contributed to Stord’s growth.

Founders and Early Beginnings

Sean Henry, 24, and Jacob Boudreau, 23, the company’s founders, first connected while Henry attended Georgia Tech and Boudreau pursued online studies at Arizona State University (ASU). Boudreau simultaneously operated a software development firm in Atlanta.

Evolving into a Cloud Supply Chain

Stord has transformed into a cloud supply chain platform. It empowers businesses to compete and expand through optimized logistics.

The platform provides integrated services “available exactly when and where they need it,” according to Henry. It combines freight, warehousing, and fulfillment to deliver “complete visibility, rapid optimization and elastic scale.”

Expansion of Physical Infrastructure

Approximately two months ago, Stord inaugurated its inaugural fulfillment center. This 386,000-square-foot facility in Atlanta incorporates warehouse robotics and automation technologies.

This marked the first instance of Stord managing a facility entirely in-house.

Acquisition of Fulfillment Works

Today, Stord announced the acquisition of Fulfillment Works, a Connecticut-based company with 22 years of experience in direct-to-consumer (DTC) fulfillment. Fulfillment Works operates warehouses in Nevada and Connecticut.

Expanded Network Capabilities

The acquisition of FulfillmentWorks expands Stord’s network to include its own first-party warehouses, alongside its existing network of over 400 warehouse partners and 15,000 carriers.

Impressive Financial Performance

While the acquisition price for Fulfillment Works remains undisclosed, Henry highlighted Stord’s strong financial performance. The company achieved over 300% growth for three consecutive years through 2020.

Stord generated more than $100 million in revenue during the first two quarters of 2021 and increased its workforce from 160 to over 450 employees, including those from Fulfillment Works.

The company anticipates the fourth quarter, traditionally a peak shopping season, to be its most profitable.

Significant Sales Growth

Stord’s new sales increased by a factor of “7x” in the second quarter of 2020 compared to the previous year. Sales have risen nearly “10x” in the third quarter.

Competing with Amazon

Stord’s core objective is to enable brands to effectively compete with industry leaders like Amazon, which have established high standards for rapid fulfillment and delivery.

The company guarantees two-day shipping nationwide.

The New Competitive Landscape

“The supply chain is the new competitive battleground,” Henry stated. “Amazon’s buying expectations and the growth of omni-channel shopping have created pressure for companies to maintain agile and efficient supply chains.”

Stord aims to provide “world-class, Prime-like supply chains” for all businesses.

Unique Value Proposition

According to Henry, Stord distinguishes itself by offering the only end-to-end logistics network that integrates both physical infrastructure and software.

Kleiner Perkins’ Continued Support

This unique approach is a key reason for Kleiner Perkins’ renewed investment in the company.

Investor Perspective

Ilya Fushman, a Stord board director and partner at Kleiner Perkins, recognized Henry’s “amazing maturity and vision” even during the firm’s initial investment in 2019.

The firm was also attracted by the “incredibly large market opportunity.”

Market Opportunity and Modernization

“Trillions of dollars of products are in motion, with consumers expecting delivery the same day or the next,” Fushman explained to TechCrunch. “While Amazon has built impressive infrastructure, the rest of the world is lagging behind.”

“There’s a significant opportunity to develop software and services to modernize this multitrillion-dollar market.”

A Plug-and-Play Solution

Fushman described Stord as a “plug and play” or “one stop shop” for retailers and merchants, eliminating the need for substantial investments in warehouses or logistics platforms.

Software Growth

Stord launched its software component in January 2020, experiencing 900% growth throughout the year. It is now one of the company’s fastest-growing segments.

Software as a Service

“We built software to run our logistics and network of hundreds of warehouses,” Henry explained. “Companies can also purchase our software to gain similar visibility for their existing logistics operations.”