Bounce Bags $19 Million Series B to Expand Its "Cloud Storage for the Physical World" Vision

San Francisco, CA – November 15, 2024 – Bounce, the innovative San Francisco-based startup revolutionizing luggage storage and convenience services for global travelers, has successfully secured $19 million in Series B funding. This significant capital infusion is earmarked for aggressive market expansion, particularly in the burgeoning Asia-Pacific region, and the development of new service verticals, building upon a remarkable 20x revenue growth since its $12 million Series A round in the spring of 2022. The company’s overarching ambition is to create a comprehensive "cloud storage for the physical world," a vision that extends far beyond simple bag drop-offs.

The core of Bounce’s business model lies in its ability to transform underutilized space within existing brick-and-mortar businesses into revenue-generating opportunities. By partnering with small and medium-sized enterprises (SMEs) that have available space – ranging from local shops and restaurants to hotels and even dry cleaners – Bounce provides a seamless platform for travelers to store their luggage. This strategic approach not only offers a crucial convenience for tourists navigating unfamiliar cities but also unlocks a new stream of income for its partners, who receive a revenue share for servicing Bounce’s app users. Currently, Bounce boasts an impressive network of over 13,000 partners across approximately 4,000 cities in 100 countries, a testament to the widespread appeal and practicality of its service. Since its app launched in 2019, Bounce has facilitated the storage of an estimated 6 million bags.

A primary driver for this latest funding round is Bounce’s strategic focus on expanding its reach into the Asia-Pacific market. According to co-founder and CEO Cody Candee, revenue from this region is experiencing explosive growth, surging by up to 4x year-over-year. This remarkable traction is attributed to deeply ingrained consumer behaviors in markets like Japan, where the concept of convenient, accessible storage solutions is already well-established. The ubiquity of coin lockers and the integral role of "konbini" (convenience stores) – which offer a vast array of services beyond basic retail, from postal services to ticket sales and even food preparation – create a fertile ground for Bounce’s offerings. Candee notes that these established habits make the adoption of Bounce’s services feel natural and intuitive for consumers in these regions.

Bounce’s ability to pinpoint optimal expansion locations is powered by a sophisticated understanding of user demand. With over a million individuals visiting the company’s website or app monthly, Bounce garners invaluable data on where travelers are actively searching for storage solutions. This "demand-driven" approach allows the company to meticulously identify and prioritize areas with the highest potential, ensuring that new partner locations are strategically placed to maximize accessibility and convenience for users. The company aims to reach approximately 30,000 locations by the end of 2026, with a strong emphasis on "quality, not quantity." This means focusing on prime spots frequented by travelers, such as proximity to major train stations, airports, and popular tourist attractions.

Beyond physical expansion, Bounce is also actively developing new service verticals to further integrate into the travel ecosystem. "Bounce for Hotels" is a prime example of this diversification strategy. This innovative program enables hotels to offer luggage storage services to their own guests through Bounce’s platform. Candee revealed that this vertical emerged organically after observing that hotels already using Bounce to store luggage for non-guests began extending the service to their in-house patrons. Currently, over 100 hotels are leveraging Bounce’s platform for this purpose.

Candee draws a parallel between the evolution of hotel services and the potential for luggage storage, referencing how breakfast, once a standard inclusion, became an optional add-on. He suggests that luggage storage could follow a similar trajectory, transforming from a complimentary amenity to a distinct, purchasable service. While this shift might be met with some resistance from budget-conscious travelers who previously enjoyed free storage, Bounce’s role is that of an enabler, providing the infrastructure rather than dictating hotel pricing strategies. The ultimate decision to charge for storage, and at what rate, rests with the individual hotel.

The "Bounce for Hotels" initiative is designed to offer significant convenience to hotel guests. Beyond mere storage, the platform can act as a gateway to a broader suite of services. Candee envisions a future where a hotel guest can interact with a Bounce kiosk and access not only luggage storage within the hotel or at off-site locations but also services like shipping their bags home, delivering them to a train station, or even checking them in for flights directly from the hotel. These capabilities are facilitated through integrations with third-party delivery and logistics providers, allowing Bounce to offer a comprehensive and seamless travel experience without needing to operate its own extensive delivery fleet. This integration strategy is crucial to Bounce’s grand vision of becoming an indispensable part of the travel journey, with hotels serving as key access points to the Bounce ecosystem.

Looking further into the future, Candee articulates a "multi-decade vision" that extends Bounce’s "cloud storage for the physical world" concept to a broader sharing economy. He foresees a shift in the concept of ownership, where individuals can rent out their belongings to others through a platform akin to an "Airbnb for things." This ambitious future hinges on the foundational infrastructure that Bounce is currently building around shipping, delivery, and its extensive network of storage points. The idea is that future generations will view the concept of purchasing items for single-use as archaic, instead opting to rent or access what they need through a "Bounce cloud." This would involve downloading, renting, or accessing virtually any physical item, transforming consumption patterns and fostering a more sustainable and efficient model.

The current focus on expanding the partner network and enhancing the core storage and movement of goods is directly aligned with enabling this long-term vision. The burgeoning availability of sophisticated logistics APIs, such as DoorDash Drive, which allows third-party companies to leverage its delivery network, signifies a trend towards greater ease and accessibility in logistics. Candee believes that as Bounce grows its core business, it will become increasingly straightforward to forge global and local partnerships for delivery, integration, and a wide array of other collaborative ventures. This growing ecosystem of logistics and delivery services is a critical enabler for Bounce’s ambitious plans.

The $19 million Series B funding round was spearheaded by Sapphire Sport, with significant contributions from existing investors including Andreessen Horowitz and General Catalyst. New investors such as 20VC Growth, FJ Labs, Shilling, and Thayer Ventures also participated, underscoring broad confidence in Bounce’s business model and growth trajectory.

David Hartwig, partner at Sapphire Sport, and Rico Mallozzi, principal at Sapphire Sport, expressed their enthusiasm in a joint statement, stating, "We’re excited to see how this new capital will fuel Bounce’s growth into new markets and power storage operations at hotels and venues. We’ve been impressed by their ability to scale their storage network with speed and efficiency, and believe they’ve only begun to tap into the potential of serving diverse storage needs." This sentiment highlights the investors’ belief in Bounce’s proven ability to scale and its vast untapped potential in addressing a wide spectrum of traveler needs through innovative storage solutions and integrated services. The company’s trajectory, fueled by this substantial investment, positions it as a key player in reshaping how travelers interact with their belongings and access convenience on a global scale.