Perishable Shipping Solutions Inks $8.7M Series A
YOUNGSTOWN, OH, Perishable Shipping Solutions has closed an $8.7M Series A round of financing led by SJF Ventures.
Perishable Shipping Solutions (PSS), a leader in the e-commerce market for perishable cold and frozen food fulfillment logistics, announced today that it has closed an $8.7M Series A round of financing. The investment was led by SJF Ventures with participation from Grotech Ventures and others including Supply Chain Ventures. David Griest, Managing Director at SJF Ventures, Lawson DeVries, Managing General Partner at Grotech Ventures and Eric Spiegel, retired CEO of Siemens USA will join the PSS Board of Directors.
The capital infusion will be used to meet and accelerate the growing demand for Perishable Shipping Solutions' direct-to-consumer services. PSS plans to add new fulfillment facilities and personnel in several states and to further develop its multi-channel direct shipping and analytics platform. PSS will also repay its Federal CARES Act loan, which provided vital liquidity during the COVID-19 credit crunch.
Demand Driven by Digital Shifts in Consumer Shopping
PSS has experienced strong growth, driven by the acceleration of new consumer e-commerce shopping behaviors in grocery and specialty foods, including an openness to trying different brands and the convenience of online purchases. The ability to pivot to online direct-to-consumer sales has also been critical for many food business owners during the pandemic, when their traditional markets were not available.
"Digital grocery and specialty food purchases are here to stay. Cold, frozen and foods without preservatives require our specialized handling operations, from receipt of the order to the consumer's table," noted Mark Nelson, CEO of Perishable Shipping Solutions. "We're thrilled that our investors recognize PSS' critical role in this cold supply chain and are partnering to further accelerate our growth."
The company's shipping and fulfillment services solve the last mile challenge in the delivery of perishable cold foods. By aggregating internet-based cold food purveyors, Perishable Shipping Solutions offers its customers a one-stop service with the reliability, economies of scale, and reduced costs that individual customers could never achieve.
"Shipping foods that are frozen or require continuous cold are the hardest to get right - there's no margin for error," stated David Griest of SJF Ventures. "We are impressed with how Perishable Shipping Solutions perfectly solves this key pain point while providing a scalable supply chain solution. Growing e-commerce brands can now focus on their food & beverage products, while PSS handles the backend logistics for fast delivery to their customers."
"Perishable Shipping Solutions is an exciting business for us in several ways," said Lawson DeVries, of Grotech Ventures. "We were attracted by the acumen of the leadership team, the exceptional growth in customer acquisition as well as the synergies with other Grotech portfolio companies. We see strong tailwinds and look forward to great success together."
#315 on Prestigious 2020 Inc. 500 List
The company also announced that it has been ranked #315 on the 2020 Inc. 500 list of fastest growing private companies in America in its first year of eligibility. Companies on the 2020 list are ranked according to percentage revenue growth in 2016 compared to 2019; PSS revenue grew 1,445% during this period.
PSS was co-founded in 2016 by Danny Catullo out of necessity. To transform his family butcher shop in Youngstown, OH to an e-commerce company shipping prime meats anywhere in the country, Danny had to develop solutions to supply chain issues for cold foods. This first-hand expertise became the basis for the innovative solutions provided by Perishable Shipping Solutions today.
About Perishable Shipping Solutions
Perishable Shipping Solutions provides pick & pack e-commerce order fulfillment services for food and beverage brands requiring temperature-controlled storage and shipping. PSS operates from bicoastal facilities; its offerings include environmentally responsible packaging and dedicated customer success teams. For more information, visit http://www.GoPerishable.com.
About SJF Ventures
Founded in 1999, SJF Ventures invests in high-growth companies creating a healthier, smarter and cleaner future. SJF's mission is to catalyze the development of highly successful businesses that drive lasting, positive changes. For more information, visit http://www.sjfventures.com.
About Grotech Ventures
Founded in 1984, Grotech seeks innovative, early-stage investments across the IT landscape and continues to invest and add value throughout the life cycle of each portfolio company. The firm has a strong combination of financial backing, industry relationships and deep domain and operational expertise to accelerate growth. With more than $1.0 billion in committed capital, Grotech supports early-stage companies through investments starting at $500,000. For more information, visit http://www.grotech.com.
About Supply Chain Ventures
Supply Chain Ventures is an early-stage venture capital partnership. Its preferred investments are in young, revenue-producing companies using information technology to enhance global marketing and supply chain management. Beyond capital, the team brings significant entrepreneurial, operating, and investment experience to help its portfolio companies be successful. For more information, visit http://www.supplychainventure.com.
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