STORD, the on-demand warehousing startup, announced Tuesday (April 17) it raised $12.3 million in venture funding.
In a blog post, STORD Founder and CEO Sean Henry said the Series A round of funding was led by Kleiner Perkins. Existing investors Susa Ventures and Dynamo, as well as others, participated in the round. To date, the startup has raised $15 million in venture funding.
In conjunction with the round, STORD announced a new model and category of distribution dubbed Networked Distribution. With it, STORD is aiming to help shippers manage the distribution through a software interface. It provides shippers with a central hub with one network, one platform, and one partner to handle warehousing and transportation.
“Modern shippers require logistics expertise, strategy, and partnership to successfully navigate supply chains that are complex, brittle, and ever-changing,” wrote Henry in the blog post. “Those shippers that effectively harness technology and innovation to amplify rather than replace these crucial human elements will be the winners.”
As it stands, STORD said shippers have been forced to keep inventory close to customers and as a result, are outsourcing warehousing and distribution to local players. That has increased speed of delivery but has injected complexity into the logistics. Shippers are left dealing with several vendors and often get stuck in long-term contracts. STORD wants to solve those pain points with its new system. “Our team at STORD believes that shippers deserve a better distribution experience. One that’s agile instead of rigid, automated instead of manual, and intelligent rather than opaque. A ‘next generation’ distribution experience transformed by technology and innovation,” wrote Henry.
In the blog post, the executive highlighted the growth the company has seen in the last year. It has expanded its team from five employees to more than 30 and has earned awards from trade groups and media companies. The company moves more than $200 million of product each month and while that is growing, he said, lots of opportunities abound. The $12.3 million investment, said Henry, will help STORD pioneer and scale the new category of Networked Distribution.