Flexe Raises Recent Funds
Regardless of the volatility within the enterprise capital area, offers are nonetheless getting achieved. Actually, one other Seattle-based firm turned a unicorn this week. Flexe, a 9-year-old firm, simply crossed the $1 billion mark after elevating $119 million in a Sequence D spherical.
The corporate operates a programmatic logistics expertise platform that assists manufacturers with the whole lot from distribution and storage, to e-commerce achievement. As retailers proceed to grapple with the snarled international provide chain, Flexe has seen demand for its companies surge.
Pandemic Causes Demand to Bounce
Practically a decade in the past, Flexe started by serving to on-line retailers discover on-demand warehouse area. Somewhat than retailers paying a fixed-cost for area, Flexe got down to assist these firms flip this expense right into a variable-cost, or one thing they solely pay for once they want it. This helped manufacturers scale simpler by means of the ebbs and move of demand.
When the pandemic hit, and the availability chain turned extra advanced, demand for this versatile mannequin skyrocketed. Actually, 60% of the most important retailers within the US use Flexe. This is the reason main funds together with Blackrock, Tiger International, and Redpoint Ventures determined to spend money on Flexe.
Buyers Taken with Provide Chain Tech
Compared to final 12 months, it’s been more durable to lift capital for late-stage, growth-focused expertise firms in 2022. It is because publicly traded development firms have seen their share costs fall because of rising rates of interest.
This recent funding for Flexe exhibits some traders are nonetheless interested by logistic and provide chain expertise that may assist firms navigate a brand new regular. Up to now, VC-backed logistic startups have raised roughly $11.5 billion in 2022. Though that is barely beneath final 12 months’s tempo, which noticed $24.5 billion raised within the area, it nonetheless illustrates the place non-public capital is flowing.
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