Shippit Series B goes the extra mile to reach $95 million

Shippit Series B goes the extra mile to reach $95 million

Shippit co-founders and joint CEOs Rob Hango-Zada & William On

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.”

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

"Ugly" lemon and lime juice cube startup Naked Rivals squeezes $3m from angel investor

"Ugly" lemon and lime juice cube startup Naked Rivals squeezes $3m from angel investor

A husband-and-wife founder team, whose lemon and lime juice cubes s...

Riverside backs Wollongong IT powerhouse VITG as M&A opportunities beckon

Riverside backs Wollongong IT powerhouse VITG as M&A opportunities beckon

Virtual IT Group (VITG), a Wollongong-based managed service provide...

Booktopia extends share trading suspension as critical funding announcement looms

Booktopia extends share trading suspension as critical funding announcement looms

Just as so many Booktopia (ASX: BKG) customers had to wait longer t...

Troubled retailer City Chic sells US brand Avenue for $18 million, launches capital raise

Troubled retailer City Chic sells US brand Avenue for $18 million, launches capital raise

As it prepares to launch a $23 million capital raise, str...