Logistics platform Fillogic announced it has closed its $13 million Series A funding round led by Revelry Venture Partners (RVP) with participation from existing investors including XRC Ventures, Closed Loop Partners, Venture 53, Groundbreak Ventures and Green Egg Ventures.
Fillogic leverages what it has coined “channel-free logistics,” a competing fulfillment model to the traditional omnichannel experience.
According to the company, shifting the focus from channels to a channel-free approach enhances a collective effort to deliver products the way the customer wants them delivered. Fillogic achieves this through its extensive network of middle-mile logistics centers and its proprietary software.
Funding detailsFillogicFunding amount$13 millionFunding roundSeries ALead investorRevelry Venture Partners (RVP)Secondary investor(s)XRC Ventures, Closed Loop Partners, Venture 53, Groundbreak Ventures and Green Egg VenturesBusiness goals for the roundAccelerate product development and expand its network of fulfillment centers.Total funding$16.7 million**According to PitchBook
Fillogic’s Hub Network places customer inventory in proximity to consumers, housed in strategically located centers within premium shopping areas. This helps streamline the picking, packing and shipping operations to facilitate delivery through various channels, including pickup at a store, curbside, parcel locker or long-haul transport.
“So, our customers, right now, that we do full wholesale and retail fulfillment for, it’s all done off the same inventory. I have no interest whatsoever in having multiple groups of inventory because that’s what uses more capacity. Same thing when we store inventory in a location. We can store multiple SKUs because of how it’s picked, packed, scanned, and shipped. We just need the inventory that the customers are buying. We don’t care where they are doing the buying as long as we can track it all,” Bill Thayer, Fillogic’s founder and chief executive officer, wrote in a blog on the company’s channel-free approach.
The company is looking to use the new funds to accelerate product development of its proprietary technology while growing the number of middle-mile logistics centers to expand its hub network.
Based on Fillogic’s data, this method has brought customers’ logistics costs down by 50%, enabling the company to grow 300% in 2023.
This acceleration in growth, along with customer satisfaction, earned the company the third spot on the FreightWaves 2024 FreightTech 25 list, announced at the F3: Future of Freight Festival on Thursday.
“If we were to design a national logistics network today, it wouldn’t resemble the traditional systems filled with costly hubs, planes and trucks. It would exploit technology and APIs to harness the existing infrastructure’s full potential. Fillogic’s explosive customer and revenue growth is a testament to the value it has created for its ecosystem,” said Peter Liu, RVP managing partner.
As part of its funding announcement, Liu will join the company’s board as director. Herb Shear, founder and executive chairman at G2 Reverse Logistics, and Gene Spiegelman, vice chairman and principal at Ripco Real Estate, also will join the Fillogic board.
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