Stowga, a platform for finding warehouse space on demand, has raised £1.5 million in a seed round from Speedinvest, Anthemis, and Force Over Mass alongside previous backers Hambro Perks and Seedcamp. The startup has also signed a partnership with international real estate firm, CBRE, which includes an equity investment in the company.
The UK startup has built a platform for renting out empty space in warehouses – the company claims that warehouses are 25-30% under-used. It added that the warehouse market is valued at £180 billion but spare capacity is being wasted.
CBRE will be using Stowga’s platform for its clients looking for warehouse space to meet short-term logistics requirements.
“Our on-demand model allows clients to switch the fixed cost of a lease to a variable cost. This transforms their economics and the response from the industry has been incredible,” said Charlie Pool, CEO. “In the past six months our average deal size has tripled – reflecting the size of the companies that are signing up with us.”
Currently Stowga has more than 4,000 warehouses listed in the UK and connects companies and logistics and delivery firms that need the space, including on-demand insurance. The startup will use the new funds to internationalise in 2018 with Germany, France and the Netherlands under consideration.