Storewise, a leading provider of retail automation software for independent grocers, announced a majority investment from Nexa Equity LLC, a private equity firm focused on scaling lower-middle market software and fintech businesses. Storewise’s existing management team will continue to lead the business as the company further accelerates growth and expands to more customers. Financial terms of the transaction were not disclosed.
Storewise’s software platform enables grocery operators to streamline operations and improve store profitability. Independent grocers throughout the United States depend on the Storewise platform for price optimization, supply chain automation, and risk management. Automating and optimizing business processes has become critical for independent grocery store operators to be competitive with big-box retailers, particularly in the last few years as the independent grocery category has rapidly grown.
Storewise plans to utilize the investment from Nexa Equity to further support its customer base, develop new products, and accelerate go-to-market efforts. Storewise and Nexa Equity will partner closely to implement software best practices and execute strategic acquisitions to bolster the functionality of the software platform.
A study by National Grocers Association notes that 33% of grocery sales in the U.S. are purchased at independent grocery stores, up from 25% one decade ago. Storewise’s software platform is perfectly equipped to help independent grocers automate manual tasks, enhance profitability, identify errors, improve operational efficiency, and minimize shrink. The company is rapidly expanding and currently serves more than 700 stores.
“The Storewise team takes pride in working with independent grocers, who play a vital role in our communities and employ more than 1 million Americans. We’re dedicated to supporting an industry critical to our nation’s economy by building a unified software platform that helps independent grocers operate more profitably and efficiently,” said Christopher Greco, President and CEO of Storewise. “We’re excited to have found a likeminded growth partner in Nexa Equity that shares our core values and will help accelerate our vision. The pace at which Storewise is being adopted, and the positive results grocers are experiencing, let us know that we’re on the right track.”
Vlad Besprozvany, Founder and Managing Partner of Nexa Equity, said, “We are thrilled to back Chris and the Storewise team to drive transformation in the independent grocery industry. We’ve been thoroughly impressed by what the Storewise team has built to date and believe that by further investing in product development and strategic M&A, Storewise will be even better positioned to deliver value to independent grocers.”
“We are proud to partner with Storewise in supporting independent grocers,” added Joey Maloney, Principal at Nexa Equity. “We see a significant opportunity to build upon the Storewise solutions to create an end-to-end platform for independent grocers to manage even more aspects of their critical business operations in a single system.”
Weil, Gotshal & Manges LLP and Kirkland & Ellis LLP served as legal counsel to Nexa Equity. Stinson LLP served as legal counsel to Storewise.
Storewise is a Kansas City based provider of retailer automation software for independent grocers. The company exists to help independent grocers operate more efficiently and compete against big-box retailers by providing them with an easy-to-use software platform that increases profit, automates manual tasks, and reduces errors. Storewise serves more than 700 stores across the country. Schedule a tour of the Storewise platform at www.storewise.io.
About Nexa Equity
Nexa Equity is a San Francisco, California based private equity firm that partners with founder-led, rapidly scaling SaaS and fintech companies that address markets underserved by technology to create enduring value for the benefit of its investors and portfolio companies. The firm has more than $300 million in private equity capital under management and is focused on continuing to grow its portfolio of companies. The Nexa Equity team brings substantial investing and operational experience to the table and helps management teams professionalize and scale their businesses while driving long-term sustainable growth. For more information, please visit www.nexaequity.com.