Grounded, a Detroit-based startup, announced it has closed a $5 million seed funding round. Repeat investors include Also Capital and Chicago-based The 81 Collection, with additional contributions from Animal Capital, the Michigan Outdoor Innovation Fund, and various SpaceX alumni.
Concurrently, Grounded has opened a new 50,000-square-foot manufacturing facility in Detroit. This expansion is intended to scale the company's modular design business, allowing it to customize various types of fleet vehicles, regardless of whether they are electric or combustion-powered. Production at the new facility is scheduled to begin this month, with increased capacity planned for next year.
Initially, Grounded focused on customizing electric vans like Ford's E-Transit and General Motors' BrightDrop for both "van life" enthusiasts and small businesses. However, changes in the EV market, including GM discontinuing BrightDrop and Ford canceling plans for a next-generation electric Transit van, led Grounded to adapt its strategy.
The company has now embraced customizing gas-powered vehicles, such as Ford's Transit and Mercedes-Benz's Sprinter vans. This shift allows Grounded to serve a broader customer base, including those not yet ready for electric vehicles due to infrastructure challenges, while still offering solutions for electric fleets.
Grounded has acquired customers across various sectors, including commercial clients like Colgate and Nokia, medical institutions such as Wayne State University Medical and the Healthy Mothers, Healthy Babies Coalition of Hawaii, and veterinary services. The company reports notable growth from food and beverage and public safety customers.
The new facility and expanded vehicle compatibility are expected to enable Grounded to meet the demand from fleet customers at a larger scale, extending its platform to a new class of commercial vehicles.
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Detroit startup Grounded secured $5 million in seed funding from investors including Also Capital and The 81 Collection. The company also opened a 50,000-square-foot manufacturing facility in Detroit to scale its modular vehicle customization business for both electric and combustion-powered vans.