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Darkstore secures USD1.4m in funding from PivotNorth

Darkstore, a third-party logistics (3PL) company based in San Francisco, has secured USD1.4 million in seed funding from PivotNorth Capital, a venture capital firm known for investing in promising software enterprises. 

Darkstore Founder and CEO Lee Hnetinka, who already raised USD150,000 in May of last year and another USD120,000 in August 2016, plans to use this latest round of funding to expand Darkstore’s growing reach in order to provide speedy order fulfilment services for a growing number of business partners across the nation.
 
Already, Darkstore features strategic fulfilment locations ranging from San Francisco to Los Angeles, Seattle, Phoenix, Chicago, and New York. This network allows Darkstore to support on-demand, same-day, and two-day deliveries, automatically routed to the nearest fulfilment centre for expedience. This is accomplished with the aid of both traditional couriers like USPS, UPS, and FedEx, but also on-demand delivery services like Deliv (another startup funded by PivotNorth).
 
Hnetinka started Darkstore with the goal of getting goods to consumers faster, as well as helping businesses gain independence from platforms like Amazon. The idea came from “dark stores” in cities like London and Taiwan – business operations that utilise excess space within other business facilities to store products for fulfilment. Hnetinka’s Darkstore operates on the same basic principle, finding unused warehouse space in major metropolitan markets and using it to store goods and quickly fulfillorders for clients who lack their own facilities. With this new round of funding, Darkstore can expand into new markets, improve services, increase capacity, and accept new clients.
 
Although Darkstore primarily serves the needs of direct-to-consumer businesses and large corporations currently, both Hnetinka and PivotNorth Founder Tim Connors (who serves as a Darkstore Board Member) believe that the service could be an ideal partner for small start-up companies seeking fast and affordable third-party order fulfilment.  Darkstore currently serves clients in industries ranging from home furnishing, entertainment, and electronics, to apparel and fashion accessories.

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