StoreToDoor secures $1.25 million to bring same-day delivery service to new markets

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After spending years running his own restaurants, Scott Love wants to help other retailers deliver goods.

Regina-based same-day delivery startup StoreToDoor raised C$1.25 million in seed funding to fuel its expansion across Canada.

StoreToDoor Founder and CEO Scott Love has worked in the food industry for 25 years. After trying his hand at Saskatchewan’s tech scene through angel investments and seeing the impact of Amazon and COVID-19 on local retailers, he decided to launch his own same-day delivery solution. .

According to Love, StoreToDoor is on track to generate $5 million in ARR in 2022.

Since rolling out to Saskatchewan in December 2020, StoreToDoor has expanded to serve 25 additional markets in Alberta, Saskatchewan, Manitoba and Ontario. Now, armed with new capital, the company plans to expand into British Columbia (BC) and other regions as it seeks to “reach national scale in 2022.”

“We pushed very, very hard to release a product before the end of [2020] because we knew the sense of urgency around COVID and took advantage of this opportunity,” Love told BetaKit in an interview. “So we launched… in Regina [on] December 27, 2020, and it just kind of took off.

StoreToDoor’s all-equity seed funding, which closed in late January, was led by Calgary-based Inverted Ventures with participation from Regina’s Lex Capital Corp, Saskatoon’s Golden Opportunities Fund and startup TNT, as well as undisclosed angel investors from Western Canada. StoreToDoor says the round gives it a post-money valuation of $9.25 million and brings StoreToDoor’s total funding to $1.6 million.

As part of the round, Inverted Ventures COO Craig D’Cruze joined StoreToDoor’s board of directors, which also includes Calgary-based serial tech entrepreneur Wilson Acton, who acts as an advisor.

Based out of Regina’s Cultivator business incubator, StoreToDoor provides same-day, white-label delivery service to businesses in the pharmacy, grocery and retail industries through its technology platform and of its network of drivers. Although StoreToDoor primarily focuses on small and medium-sized enterprises (SMEs), the startup’s customers also include large retailers. StoreToDoor’s platform can be accessed in two ways: through integrations with customers’ existing e-commerce platforms, such as Shopify, or directly through a portal.

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Having spent most of his career owning and operating a range of different Subway and Starbucks franchises, Love has developed first-hand knowledge of some of the challenges faced by brick-and-mortar retailers.

From her experience in the food industry, Love said retailers feel like they’re being ripped off by big delivery apps, which charge “fee, after fee, after fee.”

While other companies offering same-day delivery typically take a percentage of the cart, like UberEats with restaurants and Instacart with groceries, StoreToDoor takes a no-pay approach, charging its retail customers a flat rate per delivery. , with prices adaptable according to the delivery. volume.

During the pandemic, the same-day or last-mile delivery space has exploded. In Canada, the sector includes generalist players like GoFor Industries of Ottawa, Swyft of Toronto and Tyltgo of Kitchener, as well as more targeted operators like RenoRun of Montreal, Callia of Winnipeg and Tiggy of Vancouver, which deliver building materials, flowers, and groceries, respectively.

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Amid an increasingly saturated market, Love believes StoreToDoor is “in a unique place.” While some companies in this space only provide technology or only couriers, StoreToDoor offers both. Among the group of companies that do both, Love sees StoreToDoor’s flat-rate pricing model and white-label approach as differentiators.

“We’re not a third-party market,” Love said. “We don’t take [retailers’] customers, we’re actually closing that gap… That’s a really, really big reason why we have a lot of conversations with these big retailers – it’s because they don’t want to give their customers to, say, Uber or SkipTheDishes , or someone like that.

Last year, StoreToDoor generated $270,000 in revenue, according to Love. “We have already exceeded that in the first two months of [2022]”, Amour said. “We’re probably going to make about five million this year in [annual recurring revenue].”

As for StoreToDoor’s geographic expansion plans, the startup’s main focus right now is on moving to British Columbia, where it sees a “big opportunity” in the Lower Mainland.

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To date, StoreToDoor’s rapid growth has been fueled by its work with existing large retail customers with multiple locations, which has facilitated its expansion into new markets.

As for the sector, Love described pharma as a “key focus” for the startup – in part due to the small packaging typically involved – adding that StoreToDoor is also seeing “major growth” in the cannabis vertical.

StoreToDoor has 18 full-time employees and a network of approximately 400 delivery drivers. To support its expansion, the startup is looking to add six more team members in the near future in roles ranging from software engineering to customer success.

“I think we can really help some people who are struggling when it comes to retailers,” Love said. “It’s still a very trying time for them. They’ve had two years of kicking ass, and if there’s any way someone can help them out and give them a competitive edge against those big e-commerce retailers like Amazon, we’re here to help. do it.

Feature image courtesy of StoreToDoor.

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