Fulfil Announces $60M Series B as Grocers Expand Delivery Capabilities

As grocers look to escape reliance on aggregators, tech providers are offering new automated solutions.Fulfil, a startup that offers robotic micro-fulfillment center (MFC) solutions for grocers to more efficiently pick and pack eCommerce orders, announced Monday (Feb. 27) that it has raised $60 million in its Series B round.To address the many challenges facing online grocery, retailers must adopt efficient automation that substantially reduces costs and provides the accuracy, quality and convenience customers expect, Fulfil CEO and President Mir Aamir said in a statement. This 1.1-million-square-foot facility features robotics, machine learning, and automated storage, resulting in increased productivity and a better service for our customers at faster delivery times. The retailer discussed this effort on its most recent earnings call in December.We saw back-to-back quarters of strong digital growth led by our delivery solutions, CEO Rodney McMullen said. Were investing in digital growth initiatives, including expanding our Kroger delivery network in new and existing geographies.Moreover, major U.K.-based supermarket chain Asda announced earlier this month that it is partnering with digital consulting company Publicis Sapient to create an eGrocery business that will allow the grocer to transition away from relying on its former owner Walmart (which sold off Asda back in 2020) to fulfill online sales. Research from PYMNTS study Big Retails Innovation Mandate: Convenience and Personalization, created in collaboration with ACI Worldwide, which drew from a survey of 300 major retailers in the U.S. and U.K., found that 76% of grocers think consumers would be very or extremely likely to switch merchants if they were not able to order products for delivery.Plus, research from the July edition of PYMNTS ConnectedEconomy series, The ConnectedEconomy Monthly Report: The Rise of the Smart Home, which drew from a May survey of more than 2,600 U.S. consumers, found that one in four consumers order groceries online for home delivery every week and 40% do so every month.As grocers look to meet this demand, even smaller players are looking to build out their direct fulfillment capabilities to retain the entirety of the sale, own the transaction and collect customer data.