AUSTIN, TX, Favor, provider of an on-demand delivery service, announced it has raised $22 million in Series B funding.
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Favor, the Texas-based on-demand delivery service, today announced two significant company milestones: achieving profitability -- to become the first profitable on-demand delivery company in the U.S. -- and the closing of a $22 million Series B financing round led by existing investor S3 Ventures.
"Scaling a high-touch, hyper-local logistics business is no easy task, and all the credit goes to our team's relentless focus executing on our strategic growth plan," said Favor CEO & President, Jag Bath. "Achieving profitability at this scale, and the vote of confidence from our existing investors, is validation of what we are doing and underscores the future of the on-demand economy."
The latest funding will support Favor's continued rapid growth throughout the state of Texas and beyond, as well as further accelerate the company's product roadmap. The new investment brings Favor's total funding to $34 million. Favor previously closed a $12 million Series A round led by S3 Ventures, with participation from seed investors Silverton Partners, venture capitalist Tim Draper, and others.
"Favor has proven that they are building a healthy, scalable business, while maintaining their superior service and strong position in the on-demand delivery market," said S3 Ventures Managing Director, Brian R. Smith. "The company's decision to avoid growth at all costs to instead focus on surgical, smart growth, has led them to beat their profitability goal by six months-a truly impressive achievement. We remain excited and confident in Favor's future as they build upon this success."
Favor has completed more than 6 million deliveries since its launch and is on track to complete 4.5 million deliveries in 2017 alone. The increased delivery volume directly benefits Texas businesses, which the company projects will receive $100 million in gross product sales from Favor deliveries this year. To support this rapid growth, the company is onboarding more than 25,000 independent contractors to add to its existing Runner community.
Favor is the easiest way to get anything you want in your city delivered to your door in under an hour. Whether it's lunch at the office, a household shopping list or those errands you just don't have time for -- your personal assistant (we call them Runners) can deliver it in just a few taps. Founded in 2013, Favor is currently available in 15 cities across Texas, where it is currently the best rated delivery service. www.favordelivery.com
About S3 Ventures
S3 Ventures is an early, expansion and growth stage venture firm with $350 million under management. The firm is focused on information technology solutions that solve large business problems. S3 invests across all stages of a company's growth and partners with management teams to help focus methodically on what it takes to build a successful company. www.s3vc.com