Evolv Ventures invests more on micro-fulfillment
Vowing rapid expansion across the U.S. this year, micro-fulfillment center developer Fabric has announced additional funding from Evolv Ventures, the venture capital arm of Kraft Heinz.
Fabric said Kraft Heinz contributed an undisclosed additional amount to its $110 million Series B funding round which will help finance operation of a soon-to-go-live facility in Brooklyn that is capable of serving all of Manhattan.
“We are completely changing the game and helping businesses create a new ecommerce and fulfilment reality,” said Elram Goren, co-founder and CEO of Fabric. “Our goal is to help transform and advance the retail and logistics spaces by offering an on-demand fulfilment platform that increases customer satisfaction by providing faster deliveries while simultaneously enabling businesses to maintain profitability.”
Fabric was founded in 2015 and in Oct. 2018 it launch what it maintains is the world’s smallest automated fulfillment center – a 6,000-sq.-ft space that today processes up to 600 orders per day.
“This strategic investment by Kraft-Heinz will propel us forward, as we continue to expand in the U.S. market and serves as an active endorsement of our micro-fulfillment solution by one of the biggest CPGs in the world,” Goren said.
Fulfillment is one of the largest issues holding back profitable e-commerce operations for retailers today, according to Bill Pescatello, managing partner of Evolv Ventures.
“We believe the solution lies in more effective technology and automation, and Fabric has the technology, team and resources to lead this transformation,” Pescatello said. “This investment is another example of our dedication to game-changing technologies that unlock the potential of e-commerce in the retail space and our continued commitment to ensure Kraft Heinz products are available in as many channels as possible, so they can be delivered to end consumers in the most convenient and efficient manner."
Unlike other micro-fulfillment solutions, Fabric claims it offers a unique purpose-built proprietary solution that enables cloud-like elasticity for retailers. That gives retailers total flexibility to build a custom solution based on their unique inventory level, desired reach, and operating expenditure and capital expenditure requirements, expanding and flexing as their needs change, according to Fabric.
Several organizations beyond Evolv Ventures share that viewe as Fabric is backed by Aleph, Corner Ventures, Canada Pension Plan Investment Board (CPPIB), Innovation Endeavors, La Maison, Playground Ventures and Temasek.