Startups
Business / Delivery / Funding / Hiring / Startups

Sustainability-minded delivery service The Rounds just raised a $38M Series A

The round was led by Annie Kadavy at Redpoint Ventures and Andrew Chen at Andreessen Horowitz. Expect updates to the company's prediction engine and lots of hiring, cofounders say.

The Rounds cofounders Alexander Torrey and Byungwoo Ko. (Courtesy photo)

Philly-founded delivery service The Rounds has raised a $38 million Series A, its leaders announced Thursday.

The household goods startup, a 2022 RealLIST Startups honoree, aims to offer a more sustainable alternative to Amazon for household goods and pantry staples. White label and local products are delivered and refilled to customers on ebikes on an automated schedule that works best for them, and items arrive in reusable packaging.

The Rounds is following an East Coast expansion plan in quick succession. After testing the market in dense, urban markets in the Northeast like Philly and DC, the company expanded to southern cities of Miami and Atlanta earlier this year that present different challenges, like urban sprawl.

“It’s been important for us to continue to learn and prove our model will work in very different markets,” cofounder Alexander Torrey told Technical.ly in May. “That’s what we’re excited about. It’s going to teach us a lot about how to operate.”

The Series A round, which was led by Annie Kadavy at Redpoint Ventures and Andrew Chen at Andreessen Horowitz, came after a $4 million seed led by Rachel Holt at Construct Capital and Hayley Barna at local firm First Round Capital.

The Rounds has grown by more than 10 times in the last year, Torrey wrote in blog post this week, and has grown to more than 10,000 members. In a LinkedIn post Thursday, Torrey also noted the service’s technology makes a “’psychic home manager’ accessible to everyone,” allowing a set-it-and-forget-it method for home goods purchases.

“We’re still ‘young, scrappy and hungry’ (IYKYK),” Torrey wrote on LinkedIn. “We’re still learning and iterating every day. We’re still working on foldout tables and sitting on milk crates (and won’t stop), but this funding allows us to run faster, make bolder bets, and, most importantly, hire the absolute best talent on the planet.”

The Rounds also has plans to “double down” on its technology, enhancing its prediction engine that manages members’ delivery schedule. The $42 million the company has raised recently is a statement about ecommerce and the future of the planet, Torrey said. And, calling to mind the business model of fellow Philly-HQ’d delivery company Gopuff, he added:

“The future of last-mile logistics is not about getting Flamin’ Hot Cheetos delivered in 15 minutes at 1AM; the future is a sustainable two-way last mile,” the cofounder said.

Companies: The Rounds / Andreessen Horowitz / First Round Capital

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

Cal Ripken Jr. essay: The MLB legend explains his drive to build STEM centers in schools across the nation

The end of software as technology

Calling all parents with too much toy clutter: This Philly startup can help

Drexel invests $450,000 in 3 new startups across manufacturing, sustainability and cosmetics

Technically Media