On-demand storage startup Clutter is raising between $200 million and $250 million in a funding round led by Softbank, according to a report in TechCrunch.
Clutter is a service that packs, takes and returns people’s things all at the click of a button on an app. The terms of the finance round haven’t been ironed out, but it’s expected to be finalized soon.
The last time Clutter had a big financing round was in 2017, when it got $64 million from Atomico, GV, Sequoia and Fifth Wall. That round was completed on a $240 million post-money valuation. The latest round could bring the company a valuation of between $400 and $500 million.
Right now, Clutter is available in Chicago, New York, Seattle, the Bay Area and Southern California. The money, analysts predict, would be used for expansion into other markets.
The storage on demand market has a lot of competition, and older services like U-Haul, PODS and public storage facilities have a foothold in the market. The industry is estimated to be worth around $40 billion a year.
The hard part with an on-demand service is logistics. There are building facilities to acquire and a tech platform to construct, as well as hiring the right individuals, ones who share a common goal.
The reported SoftBank connection automatically gives Clutter a sort of de facto legitimacy. SoftBank has had a hand in investing in several successful companies, including Uber, WeWork, Fair, DoorDash and Compass. In fact, the company has a reputation for picking winners, something that other investors notice. A SoftBank investment can actually legitimize a business and show others that it’s something that’s going to be around for a long time.