Pandion, a Seattle-based startup facilitating online retailers in delivering orders to customers, has secured a Series B funding round totaling $41.5 million.
Established in 2020 by Scott Ruffin, a former executive at Amazon and Walmart, Pandion operates a residential parcel delivery system covering 80% of U.S. homes, supported by five sortation centers. It collects packages from fulfillment centers of clients like Saks Fifth Avenue and utilizes a network of 500,000 “last mile” delivery drivers to ensure timely delivery to end consumers.
Ruffin, previously known for his role in founding and leading Amazon Air, the company’s extensive cargo air division, brings invaluable expertise to Pandion.
Pandion faces competition from industry giants like UPS, FedEx, and, notably, Amazon. Ruffin emphasized the need for alternatives to national parcel carriers and bespoke delivery infrastructures, highlighting Pandion’s role in filling this gap.
Revolution Growth, a D.C.-based investment firm with a track record of supporting Seattle startups such as Glowforge and Carbon Robotics, led the Series B round. The investor consortium also includes Playground Global, Prologis Ventures, Bow Capital, Telstra Ventures, AME Cloud Ventures, Schematic Ventures, Proof, and Sentinel Global.
Kristin Gunther from Revolution Growth will join Pandion’s board, praising the company’s ability to democratize the Amazon-like logistics model for retailers seeking enhanced agility in their operations.
While some logistics companies have faced challenges amid a broader slowdown in startup funding post the pandemic shopping surge, Pandion appears to be thriving, buoyed by sustained growth in e-commerce. U.S. e-commerce sales witnessed a 7.6% increase last year, reaching $1.1 trillion, with online sales accounting for 22% of total U.S. retail sales in 2023.
Pandion has also announced key executive appointments, including Brent Cervenka, a former Amazon logistics leader, as Chief Operating Officer; Jeff Petersen, previously associated with Flexport and Pandion, as Head of Network Design and Strategy; Jay Sackos, a former Dolly executive, as Vice President of Sales; and Austin Luhman, formerly with Walmart, as Head of Product.
