Investments

Fabric To Expand Robotic Fulfillment With $110M Funding Round

Fabric To Expand Fulfillment With $110M Funding

Fabric, an automated logistics company that used to be called CommonSense Robotics, has raised $110 million in a Series B funding round led by Corner Ventures.

According to reports, the funding round also had participation from Playground Ventures, Temasek, Aleph, Canada Pension Plan Investment Board (CPPIB), Innovation Endeavors and La Maison.

So far, Fabric has raised $136 million. The last round raised by the company, in February of last year, was $20 million. The company was started in 2015 in Tel Aviv and is now based in New York.

Fabric is also starting a new platform model that will allow its customers to have on-site micro-fulfillment operations powered by the company’s technology.

The company now has 14 companies under contract, which include three micro-fulfillment operations under construction in New York. Those centers will be equipped to provide quick, on-demand deliveries.

The micro-fulfillment centers are staffed by robots that rove the warehouse and pick up selected inventory, along with humans who work at scanning stations. Fabric claims that a fulfillment center can process up to 600 orders per day.

Fabric’s Chief Commercial Officer Steve Hornyak said the company will use the new capital to expand into other cities. He added that while the company’s platform can be used by all retailers, it’s especially helpful for smaller businesses.

“(For) SMBs, our service model is particularly revolutionary, as it has been built to allow for multiple tenants leveraging the same platform,” he said. “It enables retailers that don’t have the resources or infrastructure to build an entirely new fulfillment operation themselves to access a world-class logistics solution that enables profitable on-demand fulfillment.”

Hornyak also recognized that Amazon is the largest force in the market and is driving customer expectations.

“When Amazon announces it’s providing free same-day deliveries of $1 items, that becomes the consumer expectation – and the faster the delivery, the more complicated and expensive it is,” he said. “Our aim is to enable all other retailers to stay relevant and competitive in this world that Amazon has created, providing the operational, strategic and financial infrastructure they need to meet consumer expectations profitably, sustainably and at scale in an on-demand world.”

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