Order fulfillment venture Shippit has raised $5.35 million in an oversubscribed pre-series B round to expand in Asia and Australia.
The five-year-old Sydney SaaS startup, which began as a shipping platform for fashion and homeware boutiques in inner-city Surry Hills has doubled it transactions over the last 12 months to more than two million deliveries a month.
Its latest clients include Cotton On, Accent Group and Kathmandu, alongside existing major retailers such as Sephora, Cue, Temple & Webster and General Pants Co.
The latest funding round more than doubles investment in Shippit to over $10 million. The equity injection came from Equity Venture Partners (EVP), Tidal Ventures and Aura Ventures alongside venture debt from OneVentures.
Joint-CEO and founder Rob Hango-Zada said the funds will be used on technology and engineering upgrades and increasing sales presence in Australia and Asia. The company has seen the number of active senders on its platform quadruple, year-on-year with staff numbers up 50% over the same period.
“2019 has been a great but challenging year for Shippit, with the beginnings of our expansion into Asia, the rapid increase in customers, and the launch of our second major product, Shippit Returns,” Hango-Zada said.
“This funding will allow us to realise our vision faster, build out our product more completely, and ramp up our presence in a much bigger market.”
The venture is also stepping up to fill the gap left by the end of 10-year-old rival Temando, which was shut down by its now French multinational owner, Neopost, in late October after posting a $13 million operating loss in 2018.
Shippit appears to have avoided those problems and appealed to local VC backers in the oversubscribed round.
Tidal Ventures, founded by Grant McCarthy. Andrea Kowalski and Wendell Keuneman, in 2016, is an early stage VC firm with two core funds: Seed and Opportunity.
McCarthy said they’d backed Shippit since its seed round.
“We have watched the Shippit team execute well against their plan to connect the fragmented carrier market so merchants can deliver the best delivery experience at an optimal rate,” he said.
Shippit ranked 22nd on the Deloitte Technology Fast 50 2019 Australia Awards.