Cloud-based supply chain company Stord raised an additional $120 million as the company plans for 1,000 employees. Already an Atlanta unicorn, the round brings Stord's valuation to $1.3 billion, according to a press release.
Why it matters: The raise comes as supply chain technology investments reached record highs after the Covid-19 pandemic increased demand for e-commerce. E-commerce spending in the U.S. is on track to surpass $1 trillion for the first time this year, according to eMarketer. Atlanta is a growing hub for supply chain innovation because of its legacy as a physical distribution hub and burgeoning technology ecosystem. Stord, along with other local companies like Verusen and Roadie are seeing massive growth because of the increased interest in supply chain.
About the investment: Stord has $325 million in total funding and crossed $200 million in annualized revenue run-rate, according to the release. The recent funding round was led by Franklin Templeton, a subsidiary of global investment firm Franklin Resources. Other participants in the Series D financing included new investors Sozo Ventures, Strike Capital and 137 Ventures. Existing investors that also participated were Kleiner Perkins, Founders Fund, BOND, Susa Ventures, Dynamo Ventures, Lux Capital and Salesforce Ventures.
About the company: Stord, founded by Georgia Tech graduates, was the fifth Atlanta company to reach a $1 billion valuation last year following a $90 million round led by Kleiner Perkins. The company aims to help mid-market businesses efficiently deliver products with its cloud-based supply chain management software and logistics network. In the past six months, the company has grown from 400 employees to more than 700. The company also increased its warehouse network from 500 to over 1,000 facilities across the U.S., according to the release.
Reliance on the private market: Private investments into companies that already have $1 billion valuations could become a trend. Valuations are leveling out and interest rates are going up. Because of that, less startups are being acquired or planning to go public. As fast-growing companies look at the current state of the economy, they may rely on the private market for capital rather than the public market, said John Yates, a technology attorney at Morris, Manning & Martin LLP. “There may even be more and larger checks written for companies who may otherwise think about going public," he said.
What’s next: Stord plans to use the latest funding to expand its capabilities and expand its team to 1,000 employees by the end of the year, according to the release. The company is piloting a new software product that aims to improve efficiency in warehouse facilities. In recent months, the company added brands including deodorant company Curie and Axiom Sleep Company LLC's One Fresh Pillow to its customer base and expanded partnerships with companies including The Coca-Cola Co. and Dollar General Corp.