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BFD Expert Voices - Retail Deals

BFD Expert Voices

Package.ai raises $14M

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Netradyne raises $90M for fleet safety

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Retail therapy

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Catch up quick

Retail transactions

It's Personnel

Package.ai, an AI-based platform that manages delivery operations and customer service, raised a $14 million Series A, CEO Ziv Fass tells Axios exclusively.

Why it matters: It's the latest example of how AI startups are driving a resurgence in VC funding.

Zoom in: The round was led by Susquehanna Growth Equity and increases the startup's total funding to about $15 million, Fass says.

The firm was selected because it "is a strategic and founder-focused partner with deep and proven expertise in scaling AI-driven SaaS companies," he says.

Proceeds will be invested in expanding partnerships with leading retailers around the world.

Zoom out: "We believe the current fundraising environment remains competitive as investors prioritize companies that demonstrate strong customer traction and efficient growth," Fass says.

How it works: Package.ai, based in Tel Aviv and New York, was founded in 2017 to help "big-box retailers modernize last-mile logistics and customer engagement," the CEO says.

The platform autonomously manages delivery operations and customer communications together.

It gives customers a personalized voice throughout all stages of the purchase journey, ensures smooth last-mile logistics, gathers feedback, handles issues, and offers add-on products or services.

What they're saying: "Traditional systems kept logistics and customer service separate, maintaining a built-in trade-off between operational efficiency and customer experience," Fass says. 

"Package.ai's AI-powered platform unifies these functions," he explains.

Customers include big-box, home furnishing retailers and service providers such as Ashley Furniture, Big Sandy Home Furnishings, Yale and Baron's Appliances.

What's next: The startup is expanding its AI capabilities to engage customers after they make purchases, Fass says.

1 big thing: Package.ai raises $14M

Netradyne, a provider of driving safety tech for commercial fleets, raised a $90 million Series D, CEO Avneesh Agrawal tells Axios exclusively.

Why it's the BFD: The company, now valued at $1.34 billion, will be profitable within 12 months, the CEO says.

The round was led by Point72 Private Investments and joined by Qualcomm Ventures and Pavilion Capital.

By the numbers: San Diego-based Netradyne booked $210 million in annual recurring revenue in 2024, an increase of more than 50% from 2023, Agrawal says.

Its pre-money valuation was $1.25 billion, he adds. 

How it works: The company provides products such as AI-enabled fleet cameras that analyze driving and sensors that can detect drowsiness, reducing accidents by more than 50%, the CEO says.

Its customers include some of the largest retailers and food and beverage companies and major enterprise fleets, he says. Its solutions can also be utilized by taxis and school buses.

Netradyne's product is designed to mitigate rising insurance costs and improve fuel efficiency, Agrawal says.

What we're watching: Agrawal says once it reaches profitability, Netradyne will be well-positioned for an IPO if it decides to do so. 

2. The BFD: Netradyne raises $90M for fleet safety

🥤 Sparkling water brand Spindrift sold a majority stake to PE firm Gryphon Investors, valuing the company at more than $650 million based on revenue of over $300 million and EBITDA of nearly $40 million, a source familiar with the situation tells Axios.

The deal values Spindrift at more than 16x EBITDA, an attractive multiple that could encourage beverage M&A this year, such as for Waterloo, Olipop and Poppi.

🪡 Joann, the fabrics and crafts retailer included in Axios' analysis of troubled retailers, filed for Chapter 11 again this week and is seeking a sale.

The bankruptcy is its second within the past 12 months, signaling tough times for the crafting space.

Rival Michaels, for example, has hovered in or on the cusp of distressed territory for the past year.

🏪 KKR is the second PE firm, in addition to Apollo, that is considering joining the buyout of 7-Eleven parent Seven & i, per Bloomberg. It would be alongside the target's founding family and Itochu

🛍️ U.S. shoppers increased spending in December, though at a more cautious pace, the Commerce Department revealed on Thursday, per Axios' Courtenay Brown.

Retail sales increased 0.4% in December, slowing from 0.8% in November, which was boosted by auto purchases.

What they're saying: Retail sales during the 2024 holiday season "grew an unexpectedly high" 4% versus 2023," to a record $994.1 billion, industry trade group the National Retail Federation (NRF) said, topping the forecast.

 "The spending pace was back to pre-pandemic growth and indicates a good start for the year ahead," NRF chief economist Jack Kleinhenz said.

The bottom line: "Consumers showed up for the 2024 holiday season, evidenced by December retail sales growth around 3% and constructive updates from a number of individual retailers this week," Fitch senior director David Silverman said.

3. Retail therapy

Monday, Jan. 13: Macy's lowers outlook for Q4 and Collars & Co. exploring fundraise. Read the newsletter

 CRM solution provider Endear raises $6M Series A

4. Catch up quick

Want more retail deals? Go deeper into our full database in the Axios Pro Deals Tracker.

• Raspberry AI, an AI image-generation platform for fashion creatives, raised $24m in Series A funding. A16z led, and was joined by insiders Greycroft, Correlation Ventures and MVP Ventures. Go deeper

• Leap, a brick-and-mortar store operator for DTC brands, raised $20m from Tribeca Venture Partners and DNX Ventures. Go deeper

• Reshop, an instant refunds startup from Afterpay founder Anthony Eisen, raised $17m from Matrix Partners, Sound Ventures, Woodson Capital and Touch Ventures, per Axios Pro. Go deeper

• Botika, an Israeli developer of AI-generated fashion models, raised $8m in seed funding. Stardom and Secret Chord Ventures co-led, and were joined by Seedcamp. Go deeper

• Figs (NYSE: FIGS), a Santa Monica, Calif.-based medical apparel maker, turned down a $1b+ takeover offer from Story3 Capital Partners. Go deeper

• Helia Capital acquired a majority stake in GoLaser, a Toronto-based provider of laser hair removal services. Go deeper

• Barry's Bootcamp, an LA-based boutique fitness chain, raised an undisclosed investment from Princeton Equity Group. Go deeper

• Pfizer (NYSE: PFE) agreed to divest a £2.5b stake in consumer health business Haleon (LSE: HLN). Go deeper

• Crumbl, a Lindon, Utah-based cookie chain, hired North Point to explore a sale that could fetch nearly $2b (including debt), per Reuters. Go deeper

• Gucci parent Kering is selling a majority stake in three Paris properties to France-based Ardian for €837m ($861m) Go deeper

• Symbotic (Nasdaq: SYM) agreed to buy Walmart's (NYSE: WMT) robotics unit for $200m in cash. Go deeper

• Amazon (Nasdaq: AMZN) agreed to buy Indian BNPL startup Axio for over $150m. Axio had raised over $400m in equity and debt from firms like Amazon, Lightrock, Peak XV, Ribbit Capital, and Creation Investments Capital Management. Go deeper

• Galaxy Universal, owner of the Tony Hawk and Gaiam fitness brands, acquired fitness apparel company Reebok Design Group and its U.S. operations, previously owned by Sparc Group. Go deeper

• Rokt, a New York-based e-commerce marketing company, said it acquired mParticle, a New York-based customer data platform, for $300m, inclusive of the purchase price and future investment. Rokt also signed a stock purchase agreement for $335m with investors Tiger Global Management, Square Peg, Barrenjoey and SecondQuarter valuing it at $3.5b. Go deeper

• Sagard Holdings of Montreal is launching a PE fund for retail investors. Go deeper

•  Eastroc Beverage Group Co., a Chinese energy-drink maker, is hiring banks Morgan Stanley and UBS Group AG to raise as much as $1b on a second listing in Hong Kong, per Bloomberg. Go deeper

5. Retail transactions

• At Michaels, president Heather Bennett, chief merchandising officer Stacey Shively and CFO Perry Pericleous are acting as joint interim CEO, following the departure of former CEO Ashley Buchannan. Go deeper

• James Snee, CEO of Hormel Foods, will retire at the end of 2025. Go deeper

• Matt Maddox, former CEO of Wynn Resorts, joined Authentic Brands Group as president, succeeding Nick Woodhouse. Go deeper

• Tim Bantle, former Eddie Bauer CEO, was named president at Filson. Go deeper

• At Krispy Kreme (Nasdaq: DNUT), Nicola Steele was named COO, Dave Skena was named chief growth officer, Raphael Duvivier was named president of international, and Alison Holder was named chief product officer. Go deeper

• Anthony DiSilvestro, CFO at Mattel, will retire on May 15. Go deeper

• Ciaran Long, former CFO, was promoted to CEO at A.k.a Brands. Kevin Grant was promoted to CFO from global controller. Go deeper

• Andy Lew, CEO at St. John Knits, was named executive brand president at Lanvin Group. Go deeper

• Dave Burwick, former CEO of Boston Beer, was named CEO of Spindrift, replacing Bill Creelman who will become chairman. Go deeper

January 17, 2025

1 big thing: Package.ai raises $14M