Radical Storage Closes $7 Million Series A Round, Including €2 Million on Mamacrowd

Lean Team srl, the scaleup that developed Radical Storage (formerly BagBnB), an online platform that allows travellers to temporarily store their luggage using unused spaces in commercial establishments around the world, has closed a Series A round of $7 million.

Radical Storage plans to ptimize the technological infrastructure

Part of the collection, for a total of 2.11 million euros, went through the equity crowdfunding platform Mamacrowd, based on a pre-money valuation of 23 million euros. The Azimut Eltif Venture Capital – ALIcrowd III fund participated in the campaign, investing 700,000 euros, and Vertis sgr, through the Vertis Venture 2 Scaleup and Vertis Venture 4 Scaleup Lazio funds , investing 555 thousand euros.

Vertis in 2020 had already led the previous round of 2.5 million euros raised by the company. The first round, however, which dates back to January 2017, was subscribed by PI Campus, still in the company’s capital.

The round was led by CDP Venture Capital sgr, through the Digital Transition Fund, financed by the EU through NextGeneration EU and aimed at the digitalization of supply chains and SMEs, the aforementioned ALIcrowd III fund, and Opes Italia Sicaf, an impact investment fund. Finint Investments also participated in the operation.

In the transaction Radical Storage was supported by Growth Capital, one of the leading tech investment banks in the venture capital ecosystem, which acted as the sole financial advisor to the transaction. Alma LED, Giovannelli e Associati and Squire Patton Boggs participated as legal advisors to the parties involved.

Founded in 2016 by Giulio De Donato (president and CTO), Alessandro Seina (CEO) and Giacomo Piva (CMO), Radical Storage currently has a solid network of over 9,000 commercial establishments (called angels), distributed in more than a thousand cities and 70 countries. Partners include companies such as Italo, Trenitalia, ITA Airways, GLS Spain. The value of services sold in 2023 was equal to 6.6 million euros (+60% year on year).

The funds raised by Radical Storage will now be used to accelerate the conversion of new merchants (called angels), reaching 30,000 points by 2027; increase marketing efforts to increase user acquisition and strengthen the brand; optimize the technological infrastructure, introducing new features and improving the management of data flows; diversify operations by launching new business lines that exploit synergies with the angel network.

Alessandro Seina, CEO and co-founder of Radical Storage, said: “We aim to create simple and impactful solutions that make travel more affordable for millions of people around the world. This funding will allow us to strengthen our commitment to customers, expand our network and improve our technology to offer even more flexibility and accessibility. We are excited not only to scale our operations globally, but also to support local businesses, increasing traffic in stores and creating new revenue opportunities. We are incredibly grateful to our investors, both old and new, who are giving us the right impetus to enter this new phase of growth.”

The scenario is as follows. With the rise of short-term rental platforms such as Airbnb, travelers often find themselves looking for convenient solutions for luggage storage before check-in or after check-out. It is estimated that approximately 600 million trips in North America and 400 million in Europe could benefit from luggage storage services, generating a market opportunity of over $8 billion. In Italy alone, the high flow of international tourists entails a market potential of $450 million, approximately 15% of the European total.

In this context, Radical Storage collaborates with commercial establishments (such as bars and restaurants) to offer a fully digital solution that allows you to store your luggage virtually anywhere. The company is set to revolutionize traditional storage options (often located in train stations) by offering wider coverage, simplifying the booking process and providing extra services such as 24/7 availability and baggage guarantee. At the same time, Radical Storage allows its angels to access a second source of income by exploiting unused spaces and to expand their customer base by welcoming tourists.

“Radical Storage has built a platform that responds to the needs of an evolving market, growing very rapidly over time and developing a global network with local partners and managing millions of bags in more than 1,000 cities. Their ability to connect supply and demand through an innovative model represents an excellent opportunity for the digital transition in a rapidly expanding sector, such as traveltech. We are confident that with the support of the Digital Transition Fund the team will further accelerate international expansion,” added Agostino Scornajenchi, CEO and General Manager of CDP Venture Capital.

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(Featured image by American Green Travel via Unsplash)

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