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Last mile delivery platform HUBBED has received the backing of the Australian Business Growth Fund (ABGF) which acquired a 30 per cent voting interest in the Sydney-based company for $12 million.
ABGF said it made the investment after identifying the company’s “clear point of difference in the market”, specifically HUBBED’s pick-up drop-off (PUDO) model which allows customers to choose where and when they can receive parcels.
Founded in 2014 by CEO David McClean, HUBBED’s consumer collection networks are currently being utilised by major local and global carriers including Couriers Please, DHL, eBay, FedEx, Sendle, TOLL, TNT and UPS.
Acting as an alternative to home deliveries, HUBBED lets customers pick up parcels from around 2,150 locations nationally including from outlets such as 7-Eleven stores, BP service stations, National Storage and independent retailers.
“We look for opportunities that can demonstrate a proven business model and need a capital boost to accelerate organisational success,” said Ghazaleh Lyari, the co-head of investment at ABGF, a fund established in partnership between the Federal Government and six Australian banks.
“HUBBED is a great Australian business that has come up with an innovative solution to address a gap in the eCommerce market. We’re excited to be on this journey with them.”
HUBBED founder McLean said ABGF’s investment would accelerate its ability to scale significantly.
“Partnering with ABGF has been a completely different experience to other financial organisations I’ve encountered,” McLean said.
“From the first meeting, I knew ABGF was truly invested in understanding and building our business through a collaborative, transparent partnership. They weren’t just looking at what the deal would mean for them in the short-term.
“ABGF’s people, values and culture sealed the deal for me. I know they are as invested in our long-term success as we are. And their expertise and network will elevate our business strategy to the next level.”
The investment will let HUBBED scale up collection points to 3,000 nationwide, and accelerate last-mile service offerings as well as give the business access to a board of advisors.
It comes just two weeks after ABGF made a $7.5 million investment into Melbourne-based e-waste recycling company Scipher, which was matched by further funding from the Clean Energy Finance Corporation.
The investment also represents heightened appetite for alternative logistics providers, and comes after One Key Access, which is helping apartment dwellers combat parcel theft, raised $1 million in a pre-seed round earlier this year.
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