Fetch Package, a last-mile package delivery company for apartment communities, has raised $50 million in a Series C round of funding and closed on a $10 million venture debt facility.
Michael Patton founded Fetch in May 2016 after being frustrated by having packages lost at the apartment community in which he was living.
“I took the time to research how communities were handling packages. What I found was that some communities are receiving up to 300 to 400 packages a week and trying to manage that volume manually, adding a significant time burden on the team,” he told TechCrunch. “I knew there had to be a better way and that solution needed to be one that could easily handle the future of package delivery as e-commerce was gaining significant traction.”
Fetch launched its operations in Dallas in February of 2017 with the goal of solving “the package problem” for apartment communities. The startup, which later moved its headquarters to Austin, has seen impressive growth.
By the end of 2017, the SaaS company was servicing approximately 2,000 apartments in the Dallas area. Over the next three years that number grew to almost 150,000 doors being serviced out of 25 warehouses in 15 markets, including Atlanta, Austin, Charlotte, Chicago, Denver, Houston, Orlando, Portland, Phoenix, Arizona and Seattle.
Fetch currently has just over 200,000 doors, or around 700 communities, across the country under contract. It says it works with seven of the top 10 nationally recognized apartment management companies in the country, in addition to “a majority of the largest owners and developers.” Last December, it inked a national preferred vendor agreement with management giant Greystar. Fetch delivered about 3.5 million packages in 2020, and hit the 2.5 million mark for volume in June 2021. The company says it’s currently on track to deliver more than 8 million packages by the end of the year.
While the company would not disclose hard revenue figures, Patton says it tripled its year-over-year ARR (annual recurring revenue) in 2020 and GAAP revenue grew 6x year-over-year. Over the last two years, Fetch has seen “record sales,” he added, and is on pace to surpass 300,000 units by year’s end. Austin-based Ocelot Capital led its Series C round, which also included participation from Greenpoint Partners, Alpaca VC and Rose Park Advisors. Existing backers Iron Gate Capital, Signal Peak Ventures, Venn Ventures, Pando Ventures and Seamless also put money in the round.
In addition to the equity raise, Signature Bank provided the company with a $10 million venture debt facility. The latest financing brings Fetch’s total funding to more than $92 million, and triples its valuation from its $18 million Series B raise last August.
Andrew Townsend, managing member at Ocelot Capital, believes that Fetch is “solving for a major bottleneck within the supply chain that is often overlooked.”
“We expect e-commerce delivery volume to continue to grow for the foreseeable future and Fetch is the only scalable solution available to multifamily operators,” he said.
What makes Fetch stand out, in his view, is that the company can “efficiently” manage the fluctuations in package volume in ways that traditional parcel storage solutions cannot. It also provides apartment residents with the “unique convenience of on-demand doorstep delivery that aligns with the varied schedules of apartment dwellers,” Townsend added.
All packages at Fetch’s client communities are sent to the company’s facilities using a unique code identifier. The company then coordinates scheduled, direct-to-door delivery with residents directly via its app in a time frame that it says “works best for their schedule.”
“This takes the property out of the package management business and provides residents with a convenient amenity,” Patton said.
Fetch works with a mix of W2 employees as well as 1099 contractors to fulfill their service. On the W2 side, Fetch has had a 50% increase in total employees since the middle of last year, with about 350 employees today. This is in addition to the “thousands” of independent contractors/gig economy workers who also serve as drivers in all their markets.
Looking ahead, Fetch will use its new capital primarily to expand into new markets, with plans to launch in South Florida, Philadelphia, San Francisco, Nashville, Minneapolis and a “few other markets” over the next two quarters. Over the next 18 months, the company intends to launch around 20 new markets. The money will also go toward investing in its tech stack and operational infrastructure, Patton said.
No comments:
Post a Comment