Ohi Announces $19 Million Series A Funding Round
Company will use investment to expand to 25 markets across the US to meet increased consumer demand for instant delivery
Ohi brand partners see significant ROI, including an average 28% increase in conversion and up to 120% higher repeat purchase rates
NEW YORK, October 13, 2021-- Ohi, the next-generation instant commerce platform that enables brands to meet their customers’ expectations of superfast delivery in under two hours, today announced the completion of a $19 million Series A funding round. Ohi will use the funds to expand its US operations to enable near-instant delivery of everything from CPG products to luxury goods in 25 markets. The funding round was led by Palm Drive Capital, a New York–based venture capital and growth equity fund, with participation from JAM Fund, a Los Angeles–based venture capital firm led by internet entrepreneur Justin Mateen. Health-Ade, SolaWave and Untuckit are among the beverage, CPG, beauty and DTC brands using Ohi’s platform to increase conversion, customer satisfaction and repeat purchases.
“At Ohi, we believe that ‘instant’ is the future of commerce, and we are building a world in which consumers can get anything from their favorite brands in less than an hour,” said Ben Jones, Founder and CEO of Ohi. “COVID-19 has accelerated this shift in consumers’ expectations of immediacy to the point that many now view two-day delivery as unacceptably slow. We want to provide all brands, regardless of size, with a best-in-class instant commerce experience while selling through their own website, allowing them to retain control of their brand story, data and customer relationships.”
Additional investors in the round included Flybridge Capital; Afore Capital; RiverPark Ventures; Ryder Ventures, the corporate venture capital arm of Ryder System, Inc.; Peter Rahal, Founder of RXBAR; Edward Shenderovich, Founder of Knotel; and Electric Feel.
Ohi’s network of microwarehouses enables midmarket DTC and enterprise brands to offer powerful post-purchase experiences from their own websites, with Amazon Prime–level delivery speeds of under two hours. Brands that partner with Ohi realize significant ROI via improved customer satisfaction, an average increase in conversion of 28% and increases of up to 120% in repeat purchase rates. Consumers who order with Ohi have up to 35% higher LTV for brands than those who choose a UPS/FedEx shipping option.
Ohi’s growing network of microfulfillment centers has quickly become the go-to solution for brands across the beverage, CPG and beauty categories, among others. Currently serving New York, Brooklyn, Chicago, San Francisco and Los Angeles, Ohi will use the new investment to expand throughout the US, with a near-term goal of operating in 25 cities by the end of 2022. Ohi will also use the funding to expand its product offering to include an option for delivery in under 20 minutes.
“In the last year, the e-commerce market has seen significant growth driven mainly by small and medium-sized companies, despite them making up just 32% of the market,” said Nick Hsu, Partner at Palm Drive Capital. “We are starting to see a major shift towards instant delivery play out more broadly across the DTC market space, and Ohi has effectively captured the post-purchase customer experience the same way that Shopify has created a renowned pre-purchase one.”
“It’s no secret that the future is instant,” said Justin Mateen, Principal at JAM Fund. “Ohi has the vision to completely transform the post-purchase space, enabling instant commerce for everyone, everywhere, without depending on large marketplaces. Ohi is led by an inspired and driven leader, and I’m proud to have invested in the team shaping the future of commerce.”
Since closing the funding round in April, Ohi has been building a team of experts from across the e-commerce and fulfillment industries. Russ Griffin, formerly VP of Sales at BigCommerce and ShipStation, joined as CRO; Rodrigo Silveira, a veteran of Dematic and Flexport, joined as Head of Engineering; and Jarrod Lovell, who ran network development at Flexe, joined as Head of Platform. The team has grown to more than 55 people, with many Amazon and Uber alumni filling out the ranks.
For more information, visit Ohi.com.
Ohi is the leading instant commerce solution for direct-to-consumer brands looking to grow their business by enabling powerful post-purchase experiences. Leveraging its proprietary, data-driven inventory management technology and robust microwarehouse platform to forward position inventory within city centers, Ohi enables brands to offer a premium, environmentally responsible, instant delivery experience to their customers.
About Palm Drive Capital:
Palm Drive Capital is a New York-based venture capital and growth equity fund that invests in leading software and internet companies with a US focus. Since their launch in 2014, they’ve espoused the notion that innovators are everywhere. They also believe that the most successful founders are visionary and principled. Palm Drive has a unique combination of strong Silicon Valley roots and New York financial discipline. In addition to its investments on the West Coast, Palm Drive has a presence in emerging US tech centers including the Northeast, the Midwest, and the South. With backing from top entrepreneurs and institutions, Palm Drive also has an expansive and differentiated network that spans across the United States, Europe, South America and Asia. For more information, please visit www.palmdrive.vc.
About JAM Fund:
JAM Fund is a Los Angeles-based venture capital firm investing in visionary founders who are focused on disrupting large spaces, redefining products and services that are core to our lives. For more information, please visit https://justinmateen.com/
Michael McMullan/Danielle Poggi
Berns Communications Group
Venture Capital Database