London-based omnichannel retail technology company Dropit is designed to unite brands’ physical and online inventories and distribution channels. Its Series C funding round was led by Vault Investments for $25 million.
The company has a total funding of $50 million. This was done via existing investors including Tiga Investments, Axentia, Sugarbee, and more.
Dropit’s latest capital will help them expand the go-to-market capabilities of their business, open a US sales office in Austin, Texas and accelerate the company’s growth by adding over 100 employees. In addition, this will help them add key hires for open positions across 12 states.
Mitigating Excess Inventory Issue
Dropit was founded in 2016 by Karin Cabili. The company provides a platform to reduce product waste and excess inventory on retailers’ shelves that negatively impacts both the environment and other businesses.
The US National Retail Association claims excess inventory continues to plague the industry. Additionally, dead inventory costs US retailers approximately $50 billion every year.
Separating online and in-store inventory is a significant cause of lost sales. This separation doesn’t allow brands to view their entire inventory across different channels, which leads to significant losses.
Companies discard large quantities of excess products in landfills or incinerate them. This leads to the creation of 2.9 million tons of landfill waste that causes increased pollution.
The next wave of retail won’t be able to function without technology. According to Dropit’s CEO and founder, Karin Cabili, the biggest headaches retailers face are keeping their online and in-store inventories separate. This is because consumers expect convenience when shopping online. Unifying online and offline inventories will reduce costs, minimize environmental impact and shorten shipping times.
Dropit’s technology allows 24-hour, worldwide access to retailers’ net sales and foot traffic without time or geographic limitations. This benefits mall-based stores and operators by combating losses due to low traffic or sales.
Dropit integration allows companies to sell their inventory online and use in-store stock delivery points as last-mile distribution points. Additionally, they can order inventory from locations closer to the customer than traditional methods. This reduces the overall environmental impact of last-mile delivery.
Dropit has worked to improve operations for US, European and UK brands over the past six years.
Dropit has added Razer to its list of supported brands after adding fashion to their services.
Dropit is a platform that reinvigorates the retail industry as a whole. Former Macy’s CEO Terry Lundgren invested in the company and served on its board. According to Lundgren, the retail industry continues to change but no real solution has been found for decades.