E-commerce fulfillment platform Shippit raises $22.2 million led by Tiger Global
Shippit, a Sydney, Australia-based e-commerce logistics platform, will expand in Southeast Asia after closing a $30 million AUD (about $22.2 million USD) Series B led by Tiger Global, with participation from Jason Lenga. Founded in 2014, Shippit's technology automates tasks related to order fulfillment, including finding the best carrier for an order, tracking packages and handling returns.
The company's Series B, which brings its total raised since 2017 to $41 million AUD, will be used to expand in Southeast Asia and double its total team by hiring 100 new people, including 50 software developers.
Shippit says it currently handles five million deliveries a month in Australia from thousands of retailers, including Sephora, Target, Big W and Temple & Webster. The company launched in Singapore in May, followed by Malaysia in August.
Southeast Asia is predicted to be the world's largest e-commerce market in the next five years, and the addressable market for us in Southeast Asia alone is already five times the size of Australia and twice the size of the U.S.," co-founder and co-chief executive officer William On told TechCrunch.
Shippit is considering expansion into the Philippines and Indonesia, too, and expects its Southeast Asian business to grow 100% year-over-year for the next three years at minimum.
Shippit's Australian operations have also seen a threefold incraese in delivery volumes over the past twelve months, On added.
COVID-19 pandemic accelerated shift to e-commerce by 5 years, new report says
The increase in online sales combined with instability in the supply and logistics chain during COVID-19 has highlighted the importance of software like Shippit. E-commerce in the Asia-Pacific was already growing quickly before the pandemic hit, with Forrester forecasting online retail sales in the region to grow from $1.5 trillion in 2019 to $2.5 trillion in 2024, at a compound annual growth rate of 11.3%.
Other startups in the same space include ShipStation, EasyShip and Shippo. Shippit's competitive strategy is to make online fulfillment as simple as possible for merchants, On said, with features like allowing the integration of online shopping carts with its allocation engine, which automatically picks the best carrier option for an order.