Fabric Receives $200M in Series C Funding
On-demand fulfillment provider Fabric has closed a $200 million Series C funding round led by existing investor Temasek, with participation from such entities as Koch Disruptive Technologies, Union Tech Ventures, Harel Insurance & Finance, Pontifax Global Food and Agriculture Technology Fund (Pontifax AgTech), Canada Pension Plan Investment Board (CPP Investments), KSH Capital, Princeville Capital and Wharton Equity Ventures.
Fabric has leveraged its proprietary robotic micro-fulfillment technology stack designed from the ground up to make on-demand fulfillment profitable and scalable for all retailers, which are experiencing unprecedented upticks in online shopping. With these latest funds, Fabric is describing itself as a “robocorn” — a play on the term “unicorn” for a private company with a valuation above $1 billion — uniquely positioned to solve e-commerce challenges in the retail space.
“At the center of this perfect storm of e-commerce is Fabric and our ability to enable on-demand retail at profitable unit economics,” said Fabric CEO and Co-Founder Elram Goren. “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.”
Fabric, which operates micro-fulfillment operations for grocery and general merchandise retailers in New York City; Washington, D.C.; and Tel Aviv; revealed major partnerships with Walmart, Instacart and FreshDirect.
With this most recent infusion of funds, Fabric will expand its on-demand fulfillment platform across the general merchandise market and build a network of micro-fulfillment centers across major metro areas in the United States. The company will support this stage of hypergrowth by also heavily recruiting for its technology, commercial, and operations teams in Israel and across the United States. Fabric now has a global team of more than 300 members, with offices in New York City, Tel Aviv and Atlanta.
“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,” noted Eric Kosmowski, managing partner at the Princeville Climate Technology Fund. “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.”
So far, Fabric has raised $336 million.
Bentonville, Ark.-based Walmart operates more than 10,500 stores under 48 banners in 24 countries, and e-commerce websites, employing 2.2 million-plus associates worldwide. Walmart U.S. is No. 1 on The PG 100, Progressive Grocer’s 2021 list of the top food and consumables retailers in North America, while Walmart-owned Sam’s Club ranks No. 9 on the list. Bronx, N.Y.-based FreshDirect was founded in 2002 and acquired by Ahold Delhaize and private equity company Centerbridge Partners in January 2021. Ahold Delhaize USA, a division of Zaandam, Netherlands-based Ahold Delhaize, is the parent company for Ahold Delhaize’s U.S. companies, consisting of Food Lion, Giant Food, The Giant Co., Hannaford, and Stop & Shop, as well as e-grocer Peapod; Retail Business Services, a U.S. support services company providing services to the brands; and Peapod Digital Labs, its e-commerce engine. Operating more than 2,000 stores across 23 states, Ahold Delhaize USA is No. 10 on The PG 100.
