Stord has been on the front line of the changing logistics landscape since pivoting into the warehouse space in 2017.
That change has been particularly apparent in the aftermath of the pandemic, says Stord co-founder Sean Henry.
“When the pandemic started, companies were adopting Stord for agile capacity across their logistics networks to react. And it’s really gone from a reactive capacity to a core, staple strategy in the future of these enterprises,” Henry told Hypepotamus. “We’re now getting calls from the Chief Digital Officers and Chief Transformation Officers, not just the Chief Supply Chain Officers, wanting to own fewer warehouses and buy less software, warehouse and transportation management systems.”
That proactive approach to supply chain has brought rapid growth to the cloud-based supply chain startup. It’s also helped propel Stord into the elite but growing list of Atlanta-raised startup unicorns.
Stord reached a $1.1 billion valuation with the close of a $90 million Series D round, led by repeat investor Kleiner Perkins.
Lux Capital, D1 Capital, and Palm Tree Crew, along with existing investors BOND, Dynamo Ventures, Founders Fund, Lineage Logistics, Susa Ventures, and an impressive list of other individual investors joined the round.
Henry told Hypepotamus that both C and D rounds came from inbound interests as investors saw “how the market is reacting to our mission.”
Shifting Supply Chain Landscape
Henry added that Stord’s rapid growth comes as more of their customers “accelerate in the omnichannel fulfillment world and want to move into more fulfillment and distribution centers with us.”
That growth spurred the creation of Stord’s first Fulfillment Center and Innovation Hub earlier this month.
The 386,000-square-foot facility will leverage new robotic fulfillment technology through a partnership with Massachusetts-based and Tiger Global Management-backed Locus Robotics.
The Series D funding raise was also accompanied by the acquisition of Fulfillment Works, a Connecticut-based logistics company focused on e-commerce. Henry said Fulfillment Works brings over 20 years of consumer-focused e-commerce fulfillment expertise, and co-founder and CEO Amy Cooper has joined as Stord’s Head of Accounts and Operations.
“It’s different to run a third-party network than be the one running the building yourself. So we’re going to learn from those 20 plus years of work and translate a lot of those learnings into our building.”
Stord will quickly expand its physical footprint with two new warehouse locations in Nevada and Connecticut.
Building Another Atlanta Unicorn
Stord has scaled quickly after participating in Dynamo Venture’s accelerator in Chattanooga and Georgia Tech’s Create-X program.
The team has built up an impressive list of mid-market and enterprise companies, including Auto Parts, Dollar General, and Home Depot. As they continue to expand nationally, Henry is quick to recognize the support of the Atlanta tech ecosystem.
“We wouldn’t be here without the Atlanta ecosystem, who, since our time at Georgia Tech has been so welcoming….We’re building on the backs of some of the incredible companies that have been here for the last few decades, from ISS to Manhattan Associates to Mailchimp, and all these companies that have gone onto IPOs.”