EXCLUSIVE: Upshop Gains Key Backing for Next Growth Phase
Store operations and omnichannel tech platform Upshop is upping its industry presence and reach through a new strategic growth investment by Level Equity of New York City. The fresh backing comes after the Tampa Bay, Fla.-based Upshop met with a variety of PE firms over the last few months.
“We had an overwhelming amount of interest in this space by the world’s top software investors. We had 100-plus firms looking, and it tells you everything you need to know that this is the place to be and that this is a trend that is not going away,’” Upshop CEO Shamus Hines told Progressive Grocer in an exclusive interview.
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Indeed, according to Hines, the partnership reflects the demand for Upshop’s technologies and tools designed to optimize retailers’ operations and workforces. Upshop's SaaS platform was specifically created for food retailers to streamline their forecasting, ordering, production, and inventory optimization processes, ultimately enabling connected operations across fresh, center, DSD and e-commerce departments.
Level Equity’s leaders underscored the value of such offerings in today’s competitive and fast-evolving food retailing environment. “We have consistently done well supporting category-leading, system-of-record software innovators like Upshop. Upshop's innovative solutions, dedication to leveling-up the market and demonstrated ability to execute a successful acquisition strategy while simultaneously accelerating both organic growth and profitability is a potent combination," remarked co-founder and CEO Ben Levin.
Added Sarah Sommer, co-founder and partner: ”We have closely tracked the explosive demand for technology that can help food retailers do more with less. The labor challenge is real, and retailers are under pressure to empower associates and maximize their stores. Technology is the unlock and we are thrilled to join forces with Shamus to help Upshop continue to enhance and grow their immense potential to solve this industry challenge.”
Hines said that the collaboration is a natural one, given Level Equity’s experience in the retail sector, which includes majority ownership in task management firm Movista. He also agreed with the notion that the investment and its ramifications give new meaning to his company's name. “In their offices at Level Equity, they have a neon sign that says ‘Level up’, and I saw it and said, ‘This was meant to be’,” he declared.
Upshop, which currently works with more than 150 retailers and 30,000 stores including Kroger, Wegmans and Hy-Vee banners, continues to focus on total store operations as the omnichannel becomes more integrated following sequential years of change. Recently capping a strong year with expanded business and a 40% increase its own staff, the company is leveraging advanced technologies to, among other things, help grocers eliminate the sticky issue of order substitution in the digital space.
In addition to providing a real-time view of inventory, Upshop is growing its capabilities in the fresh and prepared foods segments to allow food retailers to take their programs to the next level without a lot of labor, an increasing priority. “It’s come to a boiling point – people need solutions for getting that next generation of store associates ready,” Hines noted.
Hines expects the pace of business to remain brisk in 2024 and beyond, with the support of Level Equity and other existing shareholders, such as Prairie Capital. “We really put the vision together within the last two years and accomplished a ton in a short amount of time, and we have the opportunity to go even faster,” he said, adding, “It’s an exciting time in grocery retail.”
