Kraft Heinz Funding Fabric’s Microfulfillment War Chest

Fabric, which is assembling a war chest to expand its proprietary robotic fulfillment technologies in the U.S., has announced an additional investment to its Series B funding round from Evolv Ventures, the investment arm of consumer packaged good giant (CPG) Kraft Heinz. 

Led by a team of food, startup and venture capital veterans, Evolv Ventures is focused on strategic investments in emerging technologies across the food value chain. Fabric, based in Tel Aviv with U.S. offices in New York, said the undisclosed additional investment to the previously $110 million round represents “a resounding vote of confidence” from the iconic food company.

“We are completely changing the game and helping businesses create a new e-commerce and fulfillment reality,” said Elram Goren, co-founder and CEO of Fabric. “Our goal is to help transform and advance the retail and logistics spaces by offering an on-demand fulfillment platform that increases customer satisfaction by providing faster deliveries while simultaneously enabling businesses to maintain profitability. This strategic investment by Kraft Heinz will propel us forward as we continue to expand in the U.S. market and serves as an active endorsement of our microfulfillment solution by one of the biggest CPGs in the world.”

Fabric said its microfulfillment platform leverages proprietary robotic technology to enable retailers and brands to offer profitable and fast fulfillment, whether for home delivery, curbside pickup or store replenishment. The company is pursuing both local microfulfillment centers to provide logistics as a service to brands and small retailers, and dedicated facilities for grocery in the U.S., with respective units underway in Brooklyn, N.Y., and Northern Virginia with an undisclosed grocery partner.

“Fulfillment is one of the largest issues holding back profitable e-commerce operations for retailers today. We believe the solution lies in more effective technology and automation, and Fabric has the technology, team and resources to lead this transformation,” said Bill Pescatello, managing partner of Evolv Ventures. “This investment is another example of our dedication to game-changing technologies that unlock the potential of e-commerce in the retail space and our continued commitment to ensure Kraft Heinz products are available in as many channels as possible so they can be delivered to end consumers in the most convenient and efficient manner.”

Evolve is a $100 million venture backed by Kraft Heinz that invests in emerging food tech companies. Its other investments include the computer vision technology firm Zippin, the e-commerce food retailer Grub Market, the cannabidiol dispensary Flowhub and a lactose-free cheesemaker, New Culture.

In October 2018, Fabric launched the world’s smallest automated fulfillment center in Isreal, and today the site processes up to 600 orders a day out of 6,000 square feet with proven one-hour delivery capabilities. In late 2019, the company’s grocery site serving same-day deliveries went live. In 2020, Fabric is projected to rapidly expand across the U.S. market in partnership with some of the country’s leading brands with the first site in New York.