Swiftly gets $100M boost for brick-and-mortar

Swiftly, the grocery retail tech platform, has raised $100 million to expand its brick-and-mortar offering, co-founder Sean Turner tells Axios.

Why it is the BFD: The nine-figure price tag signals a robust appetite for technology that serves physical stores — and it’s particularly notable given how wary startup investors are about burning cash.

  • “In the beginning it was iconoclastic, but now, in today’s market, [cash burn] is something that investors are really paying a lot more attention to,” Turner says.
  • “We have always tried to run our business in a very capital-efficient manner. And we will continue to do so with this increase,” he adds.
Also Read :  2022 FUTEX offers a glimpse into innovative technology applications

What’s happening: The Seattle-based company raised $100 million in a Series C round led by Hong Kong-based BRV Capital Management, bringing its total funding to date to $210 million.

  • The Wall Street Journal put the company’s valuation at $1.1 billion to $1.2 billion, citing known sources, a range that Turner confirmed.

The Intrigue: “From a capitalist perspective, this offers a lot of opportunities to do some roll-ups in space,” Turner says, noting that Swiftly could look to acquire point solutions and plug-in capabilities.

In the meantime, fresh capital will enable Swiftly to onboard brick-and-mortar grocery stores, pharmacies, and convenience stores faster.

Also Read :  Biden touts federal deficit: ‘Largest one-year drop in American history’

Yes and: Swiftly has captured about 10% of the grocery retail market and hopes to increase that market share with fresh funds, Turner says.

  • Swiftly has also attracted retailers outside of its existing verticals, including electronics, home improvement and fashion, he says.
  • “It’s a pretty active area of ​​research,” he says. “There’s a whole lot of spaces to look for.”

Flashback: This is the company’s second funding in the last six months, after raising $100 million in a Series B led by Wormhole Capital in March.

Game Status: Founded in 2018, Swiftly took a disciplined approach in its early days to perfect its use of technology and demonstrate it could drive profitable growth before expanding its software to other businesses, Turner says.

  • “Finding that one-size-fits-all economy in the early days I think helped prepare us for scale.”
Also Read :  Salvatore: Shoemaker of Dreams delves into the rags to riches life of the shoemaker to the stars

The bottom line: Turner sees his technology as helping brick-and-mortar stores, even on the playing field with companies like Amazon and Walmart.

  • According to a BCG study, about 68% of Amazon’s profits come from advertising through retail media. For Walmart, about 12% of its profits come through this channel.
  • “That means they don’t have to make money selling stuff,” Turner says.

Source link