Our Investment in Logiwa
Warehouse Management for a New Age of B2C Fulfillment
Thanks to online shopping and ever-lower logistics costs, consumers are receiving more of their goods through direct shipments than ever before.
This shift to B2C fulfillment has been a boon for consumers, but it has presented a host of new logistical challenges for wholesalers and warehousing companies.
One reason is that distributors must handle a larger number of orders to move the same amount of product.
Another reason is that demand from consumers can be unpredictable. As a result, distributors have long taken a cue from Goldilocks — they stock just enough inventory to handle surprise surges in demand, but not so much that they burn cash by storing slow-moving products.
B2B distributors can at least count on retailers’ own stocks of inventory to blunt surprise fluctuations in demand. B2C distributors, though, are directly exposed to the whims of consumers — and to cope, they’re forced to bulk up their own inventory.
The complexity of B2C fulfillment often saddles distributors with high costs. To make matters worse, the existing warehouse management software (WMS) solutions are woefully inadequate for the new landscape.
WMS systems are used to manage almost all essential operations at warehouses and distribution centers. They track inventory, labor, and a variety of internal processes in extreme detail.
Logiwa co-founders Cagdas Yildiz and Erhan Musaoglu have built a WMS system for the new age of B2C fulfillment.
Logiwa, which is based in Chicago, offers cloud warehouse and inventory management software for retail and ecommerce businesses.
Most WMS solutions are still built for a B2B world. Also, the very fact that these systems are so essential has made them notoriously clunky. Distributors will often implement one-off software modifications rather than disrupt critical operations by replacing or properly overhauling their legacy WMS systems.
Today, even the top-tier WMS providers offer products that are clunky, expensive to maintain, and designed for an outdated, B2B-only world.
Distributors who are used to dealing with unwieldy WMS systems love Logiwa’s flexibility. Onboarding is brief, and the product is designed to scale seamlessly with customers as they grow. In addition, Logiwa offers top-tier functionality at a far lower price than other WMS providers.
Perhaps most important, though, is the fact that Logiwa offers the most connected WMS ever created. It has built-in integrations to Amazon, eBay, Shopify, and about fifty other online players. This broad set of plug-and-play integrations is critical for retailers and ecommerce customers who rely on multiple online sales channels.
Logiwa’s product takes its category to an entirely new level, and its market traction provides ample evidence that customers have been starving for just such a solution. When we met Cagdas and Erhan, we were immediately impressed with Logiwa’s extraordinary growth, low churn, and glowing reviews.
We believe that Logiwa has an exceptional product, business model, and market opportunity. Even more importantly, though, we’re thrilled to back Cagdas and Erhan.
The pair has worked together for more than nineteen years in supply chain and logistics-related roles, and they are deep experts in this field. As founder conflicts often destroy promising early-stage companies, this track record is a fantastic testament to their partnership.
We are extremely excited to support Cagdas, Erhan, and the entire Logiwa team. Venture Partner Woody Benson, who led this deal for LaunchCapital, will join the company’s Board as an observer.
In backing Logiwa, we are honored to join a remarkable group of co-investors, including Runway Venture Partners, Revo Capital, and Spider Capital.
You can find Logiwa on Twitter @logiwaWms. If you’re excited about how the company is redefining its product category and changing the way Americans buy physical goods, then check out Logiwa’s open jobs!
