Convenience store chain, Foxtrot, has raised $100 million in Series C funding to fuel its growth in new markets.
The chain, which was founded by Mike LaVitola and Taylor Bloom in 2014, is seeking to modernize corner store shopping by delivering a digital-first experience, whether consumers are shopping in its physical stores or ordering online.
The company first launched into the convenience store business as a digital-only delivery business but has since opened 16 physical store locations across Chicago, Dallas and Washington DC, offering rapid, on-demand delivery and 5-minute pickup.
As the next step in its growth trajectory, the company plans to open 25 new stores, including in new markets such as Boston and Austin, in 2022. Next year, the company plans to open additional stores in New York, Nashville, and Miami while simultaneously expanding its presence in current regions.
“We wouldn’t open a store in a market where we only have two stores identified. We really want to be getting four, five, six stores identified and signed in that first 12 to 18 months, and then that’s when we hit go. Cities like Austin and Boston have hit that threshold,” said LaVitola.
Foxtrot also plans to expand its merchandising model, bringing together products made by local artisans, pantry essentials and a curated assortment of wines, spirits and local beers. Additionally, it will invest in offering a private label assortment of products and ready-to-eat cafe meals, which can be ordered for both delivery and pickup.
“We’re able to identify a market need that we’re really confident in given all the sales data that we have, kick that over to our design team … to create products that are not private label in the sense of a generic version of a product, but one that’s actually celebrated and better than its national counterparts,” said LaVitola.
The latest funding round was led by D1 Capital Partners. Existing investors Monogram, Imaginary, Almanac, Wittington, Fifth Wall and Beliade, and Lerer Hippeau and Revolution also participated.