Florida-based logistics provider ShipMonk raises $290 million on the back of rising eCommerce demand
Jan Bednar started ShipMonk with $70,000 in winnings from a string of student business plan competitions and launched the business that just closed on $290 million in new funding from a small warehouse with no air conditioning in the middle of Florida.
While Bednar's new offices are still inside the warehouse his company operates, they now have air conditioning... and a $290 million financing round from Summit Partners to grow its business.
The Ft. Lauderdale, Fla.-based ShipMonk provides a slew of shipping and logistics services for small to medium-sized eCommerce businesses and right now - given the continuing COVID-19 pandemic - business is good.
We help SMBs and mid-market direct to consumer companies manage their supply chains. Help get their products from suppliers to facilities and connect with all of their sales channels including B2B ... order management, transportation management, reverse logistics," said Bednar.
The company's largest customers can book anywhere from $150 million to $250 million in revenue, but most of ShipMonk's customers are actually small businesses pulling in between $1 million and $10 million on average.
It's for these businesses that ShipMonk will fill its warehouses in Pennsylvania, California and Florida with 60,000 stock keeping units - managing around 50 different items for each customer it serves.
Bednar said ShipMonk would use the new cash to continue to upgrade its automation services and increase its staffing while also looking to expand internationally.
Profitable from the outset, ShipMonk just came off one of its best years, taking in upwards of $140 million in revenue.
Bednar began the business alone, but quickly brought on co-founders Kevin Seitz, who handles marketing for the business, and Bosch Jares, a fellow native of the Czech Republic (like Bednar) who serves as the company's chief technology officer.
The story of how Jares joined the business is indicative of the type of hustle that's allowed Bednar to grow a booming tech and logistics business from the Ft. Lauderdale beaches.
It was the Florida weather that sold Jares, a college student from one of the Czech Republic's top technical institutions, on the move to ShipMonk. Bednar had posted an internship opportunity to work (unpaid, but offering room and board) at his company on a college job board in the middle of January. The applications came pouring in, but it was Jares, a programmer who had been working with computers since age 14 who took the slot.
The rest... is ShipMonk history. Jares built the bulk of the backend for the company's initial services spending nearly 20 hours a day coding.
The thriftiness and hard work has won ShipMonk a booming business that has grown from 15,000 square feet of warehousing space into nearly 1 million square feet of storage space and a logistics service that spans the U.S.
Timing for the new round couldn't be better, as National Retail Federation estimates are banking on a 20% bump in new online sales - which could reach $202 billion this year.
Black Friday alone raked in $9 billion in online purchases, according to data from Adobe Analytics provided by the company, and consumer spending is only going to continue to move online as the pandemic continues to threaten the health and safety of American consumers.
ShipMonk's technology integrates with shopping cart and marketplace platforms like Shopify to import orders across sales channels, which are then processed at the company's warehouse locations. Customers can save up to 50% on their operational costs, according to the company.
We believe ShipMonk truly demonstrates the power of a bootstrapped, durable growth mindset. Jan identified a significant gap in the market and, together with the ShipMonk team, has scaled the business in a deliberate and capital efficient manner to address that need. The results have been impressive," said Christopher Dean, a Managing Director at Summit Partners who is taking a seat on the company's board.