Fabric raises $200 million
Fabric, the retail technology company helping big and small retailers offer fast shipping, has closed a $200 million Series C funding round led by existing investor Temasek, with participation from Koch Disruptive Technologies, Union Tech Ventures, Harel Insurance, Pontifax Global Food and Agriculture Technology Fund, Canada Pension Plan Investment Board, KSH Capital, Princeville Capital, Wharton Equity Ventures, and others. This round gives Fabric a $1b+ valuation.
Founded in 2015, Fabric developed a “proprietary robotic micro-fulfillment technology stack” to make on-demand fulfillment profitable and scalable for all retailers. The company runs micro-fulfillment operations for grocery and general merchandise retailers in New York City, Washington, DC, and Tel Aviv. Recently, it announced partnerships with Walmart, Instacart, and FreshDirect.
“At the center of this perfect storm of e-commerce is Fabric and our ability to enable on-demand retail at profitable unit economics. While we use the term ‘robocorn’ a bit tongue in cheek, we see this milestone as a real turning point in the industry, from what was once trepid exploration of micro-fulfillment to total market validation and now rapid expansion. We’re thankful to our partners for trusting us to serve them and to our incredible team who will continue moving mountains to make our vision a reality. This is still ‘day one’ for us, and we’re extremely excited about the road ahead as we expand our offering into new markets, drive more efficiencies across the supply chain, and focus on scaling.” – Elram Goren, Fabric CEO and co-founder.
“We believe the movement to local fulfillment presents an opportunity to make retail and e-commerce more sustainable, and we’re thrilled to partner with the leader in micro-fulfillment to make this vision a reality. By leveraging existing real estate with a small footprint in close proximity to end consumers, utilizing more sustainable packing materials, and minimizing shrink and waste through smart inventory management, Fabric’s micro-fulfillment centers could lower last-mile emissions significantly.” – Eric Kosmowski, managing partner at the Princeville Climate Technology Fund.