WoodPellets.com, formerly PelletSales.com, a direct-to-consumer retailer of wood pellet heating fuels, announced it has successfully completed an $11 million financing led by Monitor Clipper Partners.
.406 Ventures, the lead investor in the Company’s previous financing, also participated. WoodPellets.com will use the capital to continue its expansion.
The market’s increasing recognition of wood pellets as a
cost-effective, environmentally-friendly and domestically-produced
heating source has made biomass heat the fastest growing sector of the
U.S. residential heating market. Since its founding in 2006, WoodPellets.com has changed the way wood pellets are delivered.
In addition to its online sales model, WoodPellets.com has created a network of partnerships with other industry leaders, from stove retailers to environmental agencies.
Over the past 12 months, WoodPellets.com experienced a more than five-fold revenue growth in 2008, driven largely by referrals from existing customers and its network of affiliated stove retailers, the company said in a release. In addition, the Company has continued to grow in 2009, showing another four-fold increase in sales in the first two quarters.
The Company is working to expand its reach beyond its core Northeast market into new regions, including parts of the Midwest, Pacific Northwest and Mid-Atlantic.
WoodPellets.com said it has expanded its purchases to a network of more than 25 production facilities in the U.S. and Canada, and is working with approximately 150 pellet stove retailers to co-market wood pellets with pellet stoves, pellet boilers and pellet furnaces.
Jon Strimling, founder and president of WoodPellets.com, said, “We are looking forward to making wood pellets available via bulk delivery, so that wood pellet heat is as easy to use as oil or gas. .406 Ventures has been incredibly helpful to us in rapidly scaling both our online and offline business operations. We are looking forward to tapping into Monitor Clipper Partners’ extensive experience in developing distribution businesses as well.”
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