Storrage Inc., an app-based startup business specializing in valet self-storage services in Seattle, is planning to raise $7 million in Series A funding next year to help the company roll out a national expansion plan, according to the source. Storrage customers use the company’s app to schedule a pickup or delivery of storage items, which are kept in a secure warehouse.
Like other startups offering valet-style storage services, Storrage has attracted investors from the tech space, raising $1.5 million thus far, according to Terry Drayton, CEO. Investors include individuals connected to Amazon, Costco, Facebook and Microsoft, according to the source. Storrage revenue has grown 20 percent each month since it’s been in business, Drayton said.
Since launching last year, the company has opened a new warehouse that is four times larger than the facility it started with and doubled its local service area to 40 ZIP codes. Drayton previously announced plans to launch a franchise program that would enable the company to expand outside of Washington. It’s unclear if the company’s current expansion plan includes franchising.
“After carefully testing our app and corresponding service for a full year, we've invested heavily to build our patent-pending technology in ways that allow us to seamlessly ramp our capacity to sync with customer demand,” Drayton told the source. “That includes warehouse and distribution apps that will allow us to open new markets quickly and inexpensively.”
Drayton believes Storrage can disrupt the traditional self-storage market by appealing to customers in urban-living environments who need a limited amount of storage space for oversized and seasonal items. Storage rates range from $4 per month per bin up to $11 per month for large items. The company charges $7 for pickups and $7 for delivery. The average customer spends $20 per month, according to the source.
“About 10 percent of households [in the Puget Sound, Wash., area] use self-storage facilities when they need extra space; but let's face it, no one really wants to go to one,” Drayton said. “And they are expensive, averaging $182 a month.”
All aspects of the Storrage pickup and delivery service are managed through a mobile app available for free on Apple and Android devices. When the company receives a storage request, it delivers 17-gallon, commercial-grade containers in which customers store their items. Customers also have the option of taking photos with their smartphone, so they can remember exactly what they stored and request delivery of only the items they need.
Sources:
- Upstart Business Journal: Storage Startup Trend Hits Seattle as Serial Entrepreneur Hits Closet Space Dilemma
