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Dropit's technology allows brands to sell in-store inventory online, transform physical locations into last-mile distribution points and source orders to locations closest to the customer, reducing the environmental impact of the retail industry
LONDON, Nov. 3, 2022 /PRNewswire/ -- Dropit, an omnichannel retail technology company that unifies brands' in-store and online inventories and distribution channels, today announced that it has completed a $25 million Series C funding round, bringing the company's total funding to $50 million. Dropit has developed a platform aimed to mitigate the issue of excess inventory and product waste that is impacting both retailers and the environment. The new capital will enable Dropit to bolster its go-to-market capabilities, extending its U.S. sales office in Austin, Texas, grow its team to over 100 employees and add key hires for open positions across 12 states to support both brand and mall partners.
The Dropit platform addresses an issue critical to the retail industry. The buildup of excess inventory continues to plague the industry, with dead inventory in the United States alone costing retailers approximately $50 billion per year. Brands often have a limited view of their inventory across segregated sales channels and no solution for carrying and distributing inventory, resulting in significant forfeitures of sales when online and in-store inventory are kept separate. Brands then often resort to routing excess products to landfills or burning them, creating 2.9 million tons of landfill waste in returns alone in one year, leading to increased pollution.
"Some of the biggest headaches retail faces today boil down to brands keeping their in-store and online inventory separate," said Karin Cabili, CEO and Founder of Dropit. "The next wave of retail will require brands to use technology to advance operational efficiency and adapt to the constantly evolving shopping habits of consumers, who have grown accustomed to the convenience provided by online shopping. By unifying online and offline inventories, brands can reduce operational costs and minimize their impact on the environment, while simultaneously speeding up shipping times."
By integrating Dropit's smart-sourcing technology directly into existing fulfillment management systems, brands can leverage their existing network of physical store locations to sell all available inventory, avoid wasting product and reduce the environmental impact of high carbon emissions due to last-mile delivery by sourcing orders to locations closest to the customer, without the need to replace legacy systems.
The funding round was led by Vault Investments, a first-time investor who will also be joining Dropit's board. The round was supported by previous investors such as Tiga Investments, Axentia, Sugarbee and others.
"The retail industry continues to change, but this is one of the biggest issues I've seen the industry face for decades with no real solution to date," said former CEO of Macy's, Terry Lundgren, who invested in Dropit and also sits on the company's board. "This technology breathes new life into the retail ecosystem as a whole."
Dropit has been optimizing operations for malls and brands throughout the U.S., Europe and the U.K. over the past six years. Most recently, Dropit has expanded from fashion into the consumer electronics space, adding Razer to its growing roster of brands it services, further bolstering its positioning as a technology provider for all types of retail. Dropit is also behind PRIMARCHÉ, the world's first multi-mall, multi-brand marketplace, to connect Canada-based stores and brands into a single, one-stop-shop that mirrors the in-person mall experience online, the first to allow shoppers consolidated delivery from multiple stores in a single mall, and allowing mall operators a foothold in the eCommerce marketplace. With plans to expand to the U.S. marketplace, Dropit's technology helps mall-based retailers and operators combat losses due to reduced foot traffic and net sales around-the-clock without time or geographic limitations. Dropit's technology mitigates capacity and logistics challenges by supplying a comprehensive online sales channel that consolidates multi-brand orders and routes inventory to customers with ease from any location.
About Dropit:
Dropit is a pioneering omnichannel retail technology company that unifies brands' physical and online inventories and distribution channels through sourcing, allocation, fulfillment and last-mile distribution solutions that can be integrated directly into brands' existing fulfillment management systems. With Dropit, brands can sell in-store inventory online, transform physical locations into last-mile distribution points and source orders to locations closest to the customer, thereby reducing the environmental impact of last-mile delivery. In relevant marketplaces, Dropit consolidates multi-brand orders, enhancing the customer experience by allowing them to receive their purchases in single shipment or on-site pick-up that decreases packaging waste and emissions. For more information, visit www.dropit.shop.
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SOURCE Dropit