Deliverr Goes After Amazon Prime With $170 Million To Expand Warehouses

Deliverr has raised $170 million in new funding, with $135 million of that being Series D funding led by Coatue, according to a company blog post.

Another $35 million was a convertible note led by Brookfield Technology Partners, the post stated. Other existing investors like Activant Capital, 8VC and GLP participated, too.

The new round brings Deliverr’s total capital raised to $240 million. The new funding will let the company work more on expanding its warehouse space and evolve its logistics technology to be faster, more hassle-free and cheaper, according to the post.

With customers becoming used to more high-tech delivery times, Deliverr cited studies in the post showing that offering next-day sales will boost sales by 75 percent. The company plans to boost next-day delivery across the country and offer a “Prime-like” experience.

Deliverr also plans to add to its network of warehouses, bolstering the existing network of 50, and debuting new fast-shipping programs with leading sales and marketing channels, the post stated.

The company said in the post that it’s become clear that the initial spike in eCommerce from the pandemic won’t fade, with eCommerce now taking up over 20 percent of total retail sales, an increase from 15 percent from the previous year. The numbers are still trending upward.

Deliverr secured $40 million in funding from a Series C round led by Activant Capital in February, which brought its funding up to $70 million in total at that time.

Deliverr aims to bring its services to non-Amazon customers, with the orders fulfilled within a day or two at most. Non-Amazon customers make up an estimated $250 billion industry in the U.S.

The funding from that Series C aimed to help Deliverr with its machine learning capabilities to predict demand and inventory, attract new clients and grow its team in San Francisco, Chicago and Toronto.