(Updated with comment from Stitch Labs)
For retailers, whether they be online or offline, I can't imagine what could be more important than having complete and total control over what is happening with their inventory. Being able to easily see how of each item they ave, and being able to track it across multiple channels, while always knowing when to restock, can make a huge difference in both time and money.
Cloud-based, real-time inventory and business management solution Stitch Labs wants to be the solution to this problem. The company has now raised $3.5 million in new funding, it was announced on Wednesday. The round was led by existing investors True Ventures and Costanoa Ventures.
Stitch Labs previously raised $4.5 million, including a $3.5 million Series A round in September of last year. This latest round brings its total raised to $8 million, with previous investors including Greg Waldorf and Greg Sands.
Founded in 2011, the San Francisco based company is a cloud-based, real-time inventory and business management solution for companies who sell finished goods. Its platform includes inventory management, order fulfillment and multi-channel sales management, as well as reports and analytics.
The goal is to give small and medium sized business information to help them manage and increase online, offline and brick & mortar sales.
I spoke to company co-founder Jake Gasaway last year when the company raised its Series A, and he gave me an example at the time of how one of its customers was able to use the platform to increase revenue by using Stitch Labs: custom T-shirt seller Farm Fresh Clothing had been tracking its inventory and orders with a system only one staffer knew how to use. Farm Fresh then switched to using Stitch Labs and was able to grow from annual revenue of $600,000 to $3 million because it was better able to keep track of its inventory.
Using Stitch Labs, any member of the Farm Fresh sales team was able log in to the inventory and order management dashboard via a mobile device. While out with a client, they could see how many items they had left, write the order and send it directly to the warehouse, who would get the notification immediately.
Obviously Stitch Labs is offering a service that many companies have ben yearning for, as the company has been growing rapidly, with orders managed through the Stitch platform having increased by more than 700% over the past year alone. There is now more than $100 million passing through the platform every single month.
The company says it will use its new funding to scale its platform, and to increase its marketing efforts by growing both its marketing and engineering teams. It will also add new integrations; the company's integration partners include Square, Amazon, eBay, Etsy, Shopify, Quickbooks, Xero and BigCommerce.
"Stitch Labs will be using the funds to to expand their marketing and engineering teams, the first step was to hire a CMO and a VP of Engineering, which was done in August. However, they'd like to focus on customer acquisition through marketing efforts, and scale the platform effectively. When I say "scale" I mean make significant changes that allow Stitch Labs to add updates quickly and efficiently," Brandon Levey, CEO and founder of Stitch Labs, told VatorNews.
"Additionally, scaling the platform with more integrations like Square and Xero give Stitch Labs the ability to market to much larger companies within the $2 to $20 million profit margin. Finally, Stitch Labs has about 22 employees and they are always looking for more! They will be adding specifically to the engineering and marketing teams."
(Image source: stitchlabs.com)