Australian shipping management platform Shippit.com has bagged $1.63 million (A$2.2 million) in a Series A funding round led by venture fund Aura Group and other participants including Addventure Fund and RTL Group Investments.
Shippit, a software provider for online retailers’ logistics requirements, is now aiming to expand in Asia Pacific within the next twelve months and will use the funds raised for this expansion.
“We are targeting Southeast Asia as the next expansion move based on the existing client demand,” Shippit co-founder and joint CEO Rob Hango-Zada told DEALSTREETASIA over the phone. He added that the company is working on the strategy for countries in the region to start with.
Founded in 2014 by Hango-Zada and co-founder and joint CEO William On, the company currently services over 750 merchants, including Sephora, Topshop, Thankyou, and Pet Circle, and ships over 250,000 parcels via its platform each month.
The company was originally seeking A$3 million but the funding round was oversubscribed and garnered A$5 million from investors. During the fundraising process, Shippit’s user base grew by over 40 per cent and monthly revenue by around 200 per cent. This higher-than-projected growth reduced the firm’s capital requirement and led its founders to reconsider the funds it needed to raise.
“We received a humbling flurry of interest, however we didn’t think it would be wise to accept more capital than we actually required. The purpose of this raise was specifically to obtain growth capital to invest in strategic hires, building out the local team, as well as supporting rapid expansion into international markets,” Hango-Zada said.
After the funding, Shippit joins a portfolio of investments across its new partners, which includes the likes of Slack, Yahoo, Flipboard, Houzz, SocietyOne, Primo Smallgoods and Temple & Webster. The Series A was run by one of Shippit’s advisors, Howard Leibman of Equity Venture Partners, who also ran Deputy’s $25 million raise earlier this year.
The capital injection will also support Shippit’s focus on sales and marketing efforts while expanding its product engineering team to continue building a world-class solution to a global problem, according to the startup.
“The purpose of this raise was specifically to obtain growth capital to invest in strategic hires, building out the local team, as well as supporting rapid expansion into international markets,” Hango-Zada added.
The company is expanding at a time when the fast growing e-commerce market in Southeast Asia is poised to surpass $25 billion by 2020, according to Frost and Sullivan.