Australia's Shippit secures $46m Series B
Tiger Global Management, Tidal Ventures, and SecondQuarter Ventures have led an AUD 65m (USD 46m) Series B extension for Australia-based logistics software provider Shippit.
The round was completed at a pre-money valuation of AUD 300m, up from AUD 100m in December 2020 when Tiger Global led an AUD 30m Series B.
Shippit received seed funding from Equity Venture Partners in 2015, a year after it was founded, AVCJ Research’s records show. A AUD 2.2m Series A was completed in 2017 with participation from Aura Group, AddVenture Fund, and RTL Group Investments. AddVenture Fund was the first iteration of Tidal, a local early-stage investor currently deploying an AUD 30m fund.
Shippit has developed a multi-carrier allocation technology that uses artificial intelligence to connect retailers with the best delivery options. It functions as a series of application programming interfaces (APIs) that plug into existing systems, integrating e-commerce platforms and carriers, so they are accessible from a single point.
Services span orders and fulfilment, shipping and delivery, and post-purchase experiences. Customers include Sephora, Temple & Webster, Kathmandu, Cotton On, General Parts, and Cue. The company entered Singapore and Malaysia in 2020 and now has 200 customers in those markets.
Shippit facilitated 40m deliveries in 2021, up 21.3% year-on-year, while revenue has increased 100% in each of the past three years, co-CEO William On told The Australian Financial Review. He added that the company relies on metrics like those used in the software-as-a-service (SaaS) industry, with profit margins in the 75-80% range.
“We have been pretty capital-efficient, and we were profitable for the whole of 2020 and that led Tiger and Tidal to see our ability to capitalise on the opportunities we have and see other opportunities in new growth vectors,” On said.
Earlier this year, Shippit made its first acquisition, picking up Premonition, a specialist in last-mile delivery software, for AUD 20.5m. The company also teamed up with Uber to offer one-hour deliveries in the fashion and apparel space.
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