Red Rover, the Tampa-based company from PODS’ founder, has secured another $15 million in its quest to go national.
This is the third round of funding for the company that launched in January 2020. It raised $10 million in late 2020, then $13.6 million this January.
“I would like to keep the funding fluid; this is a very capital intensive business,” said Peter Warhurst, founder and CEO of Red Rover. “I’m optimistic to see more money in Q1, put that to work and make additional value.”
The latest funding is entirely from Oppenheimer & Co.’s asset management business in Tampa, with the option for follow on funding.
“Oppenheimer is pleased to be partnering with Peter Warhurst and Red Rover’s highly experienced management team of moving and storage industry veterans, who possess a demonstrated history of successfully founding and building exciting new growth companies and creating equity value,” Robert Lowenthal, president of Oppenheimer, said in a statement.
While Warhurst’s final answer depends on how much funding he raises, he wants to use the initial $15 million to add roughly 10 to 15 new markets to the existing five locations across the U.S.
“We will open in Chicago, D.C., Atlanta and depending on however much [Oppenheimer] raise for their fund, I see us moving out to the West Coast,” he said. “What we’re trying to do is find the high outbound market and match them with high inbound markets.”
The company has patented and patent-pending devices to let users move and store items to a new home state. Its headquarters is in Tampa, with roughly 60 employees nationwide and 30 of those in Tampa Bay.
The growth is “actually a little slower” than Warhurst anticipated due to Covid-19. Still, he believes the capital infusion will fuel growth — and eventually land the company in the public market sector. He estimates going public could happen in the next three to five years, with the likelihood being closer to the five-year mark.
“The beauty of Oppenheimer is they will be a long-term partner with our exit strategy, whether that’s to sell the company or take it public,” he said. “I’m done having to chase capital; now it’s just having a conversation with them, saying what makes sense for everyone. So, it’s nice to be in that position to take it to our exit.”
