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Inventory management solution has increased its revenue by over 1,000% this year
Cloud-based, real-time inventory and business management solution Stitch Labs has raised $3.5 million in Series A financing, it was announced on Tuesday.
The investment was led by Greg Sands from Costanoa Ventures, with participation from True Ventures and Greg Waldorf. The company had previously raised $1 million in seed funding, bringing its total funding to $4.5 million.
The new funding will be used to "heavily invest in product development," cofounder Jake Gasaway told me.
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, multi-channel sales management, 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.
"It is aimed at better automating operations tasks so that business owners can better focus on how to grow their companies," said Gasaway.
For example, one of its customers is custom T-shirt seller Farm Fresh Clothing. The company 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 to 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.
"We take a holistic approach to commerce. We don't care how or where our customers sell their products. We just want to help them sell in the most effective way possible," said Gasaway.
Though he counts companies like TradeGecko, Lettuce, ChannelAdvisor and Ordoro as competitors, Gasaway says that it is the team at Stitch Labs that separates it from the competition.
"The founding team has both a technical background and intimate knowledge of product-based businesses that enable us to connect on a deep level with our customers," he said. "As we've added team members, we are focused on hiring people that are equally obsessive about making the customer experience even better."
In addition, he also cited the company's design as a big selling point as well, as the company is "making an extremely complicated process as simple as we possibly can."
"Customers come to us on a regular basis and tell us that they are extremely impressed with everything from our website to our focus on usability within Stitch itself," he said.
While the company does not disclose its reveue, or the number of customers it has, Gasaway did reveal that the company has been growing quickly.
Stitch Labs has grown tenfold in 2013 and is currently processing more than one million orders per month. The company also increased its revenue by more than 1,000% this year, and more than doubled the size of its team to 14 in the last two months.
The company's integration partners include Amazon, eBay, Shopify, BigCommerce, PayPal, Xero, and ShipStation.
"While inventory management is at the core of what we do, we have the ability to provide our customers unbelievably powerful insights about their business. Not only can we tell them what they've done, but we can help them make better decisions about what they should do."
(Image source: https://www.stitchlabs.com)
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