Inventory management startup Stitch Labs has raised another $3.5 million, as the company seeks to accelerate growth and offer more features for its customers. The funding comes from existing investors True Ventures and Costanoa Ventures, which are doubling down on the company after putting in $3.5 million last year.
Stitch offers a platform that enables businesses to keep track of the stuff that they’re selling across multiple different sales channels. Focused mostly on the small- to medium-sized business market, the company has integrated with a large number of storefronts, shipping providers, and payments platforms.
But it saw a big opportunity to move upmarket and to offer higher-value services to a number of higher-value clients, and so it completely rebuilt and relaunched its core platform a few months ago. According to CEO and founder Brandon Levey, that new platform will give Stitch the scale and flexibility to serve them.
Stitch has seen a rapid increase in the number of orders that have passed over its platform, but the recent updates should drive even more adoption. Order volume has increased 700 percent over the past year alone, with $120 million in transaction volume going through the platform every month, according to Levey.
The new Stitch platform is built on an API that it hopes to integrate with a number of other third-party services available and to increase the amount of data that it can collect and offer up to its customers. And that, in turn can enable it to do some interesting things with predictive analytics.
The company’s focus is expanding beyond just inventory management to also include predictive ordering and sales channel management. Based on what it knows about all the orders processed, it can help its customers with future inventory planning and eventually sales channel automation.
Already the company has grown more than 4x over the past year, but there’s more hiring to do. The goal, according to Levey, is to create an API for commerce, which customers will be able to plug into a wide range of supply and sales platforms. To support that vision, the company plans to use the funding to expand its engineering and marketing teams.