Route Raises $40 Million Series C Round at $1.4 Billion Valuation
Route (Lehi, UT) announces a Series C raise of $40 million based on a $1.4 billion valuation, up from its previous $1.25 valuation of its 2022 Series B raise of $200 million.
Money
June 25, 2024, Lehi Utah
Route, a Lehi, Utah-based post-purchase package tracking and protection solution, today announced it has closed a $40 million Series C funding round at a $1.4 billion valuation, cementing its position as a foundational part of the tech stack for global ecommerce brands. The round was led by Hanaco VC (Tel Aviv and New York) with participation from previous investors JAWS Ventures (Miami Beach, FL and New York) and Madrona Ventures (Seattle, WA). Granger Management (New York) also participated in the round.
Known for its package tracking and protection solutions, Route surpassed $100 million in revenue in 2023 and $15 billion in protected merchandise, solidifying its position as a foundational part of the ecommerce tech stack. With the $1.4 billion valuation, the company reinforces its status as a Utah unicorn.
The company employs nearly 300 people. 161 employees are based in Utah.
Route empowers over 13,000 brands, including Alice + Olivia, BlendJet, Cult Gaia, Tom Ford, Daily Drills, LoveShackFancy, Solo Stove, and Wellbel, to offer powerful experiences like shipment tracking, package protection and carbon offsetting that engage and delight customers long after an online purchase is made. Overall, this strengthens a brand's relationship with its audience, leading to increased loyalty, improved retention and new revenue streams, while reducing costs from shipping losses.
With demand for post-purchase solutions surging, Route achieved a $100 million in revenue in 2023, and is on a clear path to profitability, reports the company.
In June 2024, Route surpassed $15 billion in protected merchandise, underscoring the ecommerce unicorn's market position and traction with retailers and their customers.
"Today's consumers demand 24/7 visibility into everything they buy, putting retailers under pressure to meet their expectations. That's why post-purchase experiences have become central to brands' identities, because shoppers view them as table stakes," said Michael Yamartino, CEO of Route. "Thousands of brands have turned to Route to deliver the same quality service that billion-dollar retailers provide. With our new funding, we'll continue to expand our solutions that help brands boost customer lifetime value and satisfaction, while carving our own path to profitability."
"This funding round represents a pivotal moment for Route as we continue to innovate and provide unparalleled solutions that reshape the ecommerce landscape," Route's co-founders Evan Walker and Mike Moreno said in a joint statement. "Our journey from a bold idea to a billion-dollar entity reflects our commitment to excellence and the trust placed in Route by both consumers and brands worldwide."
For ecommerce customers, Route has become a ubiquitous part of the shopping experience: Across more than three million active users, Route shoppers are using the platform to track their shipments more than 10 times per month on average. Additionally, Route's customer satisfaction score of 97% is best in class compared to the ecommerce industry benchmark of 80%.
"Route is a unique combination of a strong, mature management team, rapid growth with a clear path to profitability, and unique market positioning," said Lior Prosor, partner and co-founder of Hanaco VC. "We believe post-purchase is the 'final frontier' in the ecommerce stack that still has a lot of room for disruption as well as consolidation. The experience can be dramatically improved for both the merchant and, more importantly, the end consumer. Route is the market leader in this category."
Route's package protection is unique in that it is licensed, compliant and backed by a legitimate insurance policy, safeguarding merchants and their customers from risk. Fully compliant package protection ensures merchants don't have to worry about the regulatory or financial risk of using an unlicensed provider or DIY software.
"Wellbel prioritizes sustainable growth and values trustworthy partnerships. With Route as our partner, we are confident that our business and community are consistently protected," said Hattie Gilpin, Wellbel's Director of Operations.
Financial Technology Partners (FT Partners) served as exclusive advisor on this transaction, helping Route to navigate a unique fundraising environment on the back of its impressive growth trajectory and runway.
See our previous TechBuzz article discussing the story behind Route's founding and its 2022 $200 million Series B raise that put the value of the company at $1.25 billion.