Stord Inc., a startup that helps consumer brands deliver their merchandise to customers, has raised $250 million in late-stage funding.

The company disclosed in its announcement of the Series F round today that more than half a dozen investors took part. The consortium included asset management heavyweights Franklin Templeton and Baillie Gifford. Stord is now worth $3 billion.

Atlanta-based Stord operates a logistics network that companies can use to ship goods to their customers. Additionally, it provides a software platform that optimizes those deliveries. It says that it processes merchandise worth more than $15 billion every year. 

The company’s logistics network comprises nearly 100 U.S. warehouses that enable it to deliver packages in under two days. Online merchants can use the facilities to ship orders directly to consumers. A brick-and-mortar retailer’s suppliers, meanwhile, can partner with Stord to deliver merchandise to physical stores. The company also supports business-to-business transactions such as the delivery of raw materials to a factory.

Stord performs so-called retail consolidation to lower shipping costs. The practice involves placing multiple suppliers’ merchandise in the same delivery truck, which reduces unused shipping capacity. The company says that it can provide savings of up to 30%. 

Its other revenue stream is a software platform called Stord One Commerce. It enables companies to customize how their merchandise is shipped. A consumer goods manufacturer, for example, could minimize delivery times by using a distribution warehouse near the store to which it’s shipping goods. It’s also possible to optimize shipping routes for cost-efficiency rather than speed.

The platform includes controls that ensure goods don’t expire by the time they arrive at their destination. Additionally, retailers can use the software to manage customer returns. A tracking dashboard shows the current status of each shipment. 

Stord’s core logistics features are complemented by a set of artificial intelligence tools. One tool alerts companies to delivery delays, demand spikes and other supply chain events. A chatbot enables logistics professionals to collect additional information about an incident using natural language prompts. It can also generate troubleshooting suggestions in some cases.

“Stord extends across every consumer touchpoint, pre-purchase through post-delivery, because that is where the consumer relationship is won or lost,” co-founder and Chief Executive Officer Sean Henry wrote in a blog post. 

The funding round follows three years in which its annual revenue grew tenfold, to nearly $1 billion. The company’s software business is growing even faster, having doubled bookings in the first quarter. Stord obtained some of its software capabilities and warehouses through a series of recent acquisitions. As a result, it’s possible that some of the new funding will go toward additional asset purchases. 

Image: Stord