Charlie Pool, founder of Stowga
The on-demand warehouse start-up has received backing from CBRE, Anthemis, Force Over Mass, Hambro Perks, Seedcamp and Speedinvest.
Stowga, the on-demand warehousing marketplace, has announced that it has raised £1.5m in Seed funding from leading investors Speedinvest, Anthemis and Force Over Mass.
Early investors Hambro Perks and Seedcamp also followed-on in the round bringing total raised by the platform to £1.8m.
CBRE, the global real estate advisor has also entered into a strategic relationship with Stowga as part of its investment.
Stowga is out to revolutionise the warehouse market, which is valued at £180bn, through its transparent, cost-effective and simple to use solution.
Warehouses are typically 25-30% under-utilised and Stowga’s warehousing as a service platform monetises that spare capacity by connecting them to customers who take the space without being tied into a long-term lease.
In just 12 months, Stowga has built a network of over 4,000 warehouses in the UK and connected them to customers ranging from start-ups like Pi-Top to publicly traded international corporates like Natures Bounty, owner of Holland & Barrett.
As well as storage, the platform also connects other logistics services such as transport and fulfillment as well as on-demand insurance and factoring. The new injection of capital is intended to enhance development of the platform, and prepare for an ambitious international roll out in 2018.
Charlie Pool, co-founder and CEO, said: "With Stowga we've really identified a market that's ripe for change. Our on-demand model allows clients to switch the fixed cost of a lease to a variable cost. This transforms their economics and the response from the industry has been incredible.
“In the past six months our average deal size has tripled - reflecting the size of the companies that are signing up with us. This financing and the partnership with CBRE allows us to turbo charge that growth and build a business that will define 21st century logistics."
As well as CBRE, Speedinvest, as one of the most active investors in Europe, are well placed to help with the company’s planned European expansion. Anthemis, as a leading investor in financial technology, has been brought in to help Stowga with the development of the insurance and trade finance products.
“We’re delighted to be able to support the Stowga team from the very start of their journey”, said Anthemis founder and chief investment officer Sean Park.
“He added: “Over the last decade, we’ve aimed to place bets on a number of category creators and fortunately many have gone on to not only redefine their market, but facilitate the push into the digital age for the financial services industry more broadly.
“Charlie and Joey have the opportunity to make a mark beyond on-demand warehousing, but rather on international trade on a global scale.”
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