Sydney-based logistics tech platform Shippit has announced the completion of a $65 million Series B2 capital raise today, as backers such as Tiger Global and Tidal Ventures boost the coffers for the last-mile delivery experts' global ambitions.
The investment builds on a $30 million Series B round completed in December 2020, lifting the total amount raised in the latest funding round to $95 million, in addition to the $11 million raised since 2017.
The raise saw the addition of new investors such as SecondQuarter and Perennial, as well as Siteminder (ASX: SDR) co-founder and chairman Mike Ford.
Shippit co-CEO William On said the raise would enable the company to cement its position as an industry leader in Australia and scale-up operations in Southeast Asia.
“We’ve rapidly expanded in Singapore and Malaysia which now accounts for 10 per cent of total bookings on [the] platform,” said On, who won the 2021 Sydney Young Entrepreneur of the Year Award in the Digital Disruptor category.
“Southeast Asia is the fastest growing e-commerce market in the world, and with a population twice the size of North America, it has limitless potential.”
The company said it would also use the capital injection to focus on customer acquisition, product development and help reach Shippit’s goal of delivering 200 million shipments without waste by 2025.
“After a record-breaking period for e-commerce and for Shippit, we’re ready to power the future on a global scale by bringing carriers, retailers and customers together in the leanest way possible to reduce waste and inefficiencies across the supply chain,” said On, who was named number 23 in Business News Australia’s Top 100 Young Entrepreneurs list.
“In our evolving industry, standing still means moving backwards. This raise allows us to move forward, ushering in the future our industry deserves.”
Last year, the company powered more than 40 million e-commerce deliveries, reflecting a 300 per cent increase on pre-pandemic levels.
That same year, the company appointed David Gordon – who has sat on the board of fashion retailer Accent Group (ASX: AX1) for 15 years – as chairman in November.
More recent appointments include SDR’s Ford as a strategic investor, as well as other execs from tech giants eBay, Afterpay (ASX: SQ2), Atlassian and Xero (ASX: XRO).
The Series B2 round comes almost two months after the company announced it was partnering with Uber to make same hour delivery a reality for retailers nationwide and the acquisition of Software-as-a-Service platform Premonition, which helps enterprise logistics fleets optimise and operate their transport network.
Founded in 2014, Shippit’s customers include the likes of Target, Myer (ASX: MYR), Cotton On and Big W.
“Tidal is thrilled to continue supporting the growth of Shippit by co-leading this round with Tiger Global,” said managing partner at Tidal Ventures Grant McCarthy, who is a former founder and product leader at Atlassian.
“We have huge conviction for the opportunity ahead both in Australia and Southeast Asia.
“This funding will secure a substantial roadmap to deliver increasing value to merchants, the carrier network and recipients alike and continue to raise the bar on the logistics industry.”
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support