Sydney-based courier service provider Sendle has raised a A$20-million ($14.4-million), oversubscribed Series B funding round led by Australian private equity firm Federation Asset Management, according to local media reports.
The financing for Sendle was said to be one of Federation’s first investments. Full Circle Venture Capital, Rampersand and Giant Leap Fund participated as return backers.
The Series B investment is reportedly aimed at assisting Sendle’s overseas expansion plan, after the company has grown its customer base by 600 per cent over the past two years.
The company had raised A$5 million in its Series A round in 2016.
Founded in 2014, Sendle offers full carbon neutral delivery services, focusing on small to medium-sized business and online retailers.
“We exist to offer a cheaper and convenient alternative to Australia Post — a 200 year old functional monopoly that has remained largely unchallenged up until now. The new funding will ensure that we’re well resourced to ramp up our ‘Post without the Office’ fight in 2019 to educate the market about their options,” Australian media cited Sendle’s co-founder and CEO James Chin-Moody as saying.
“James and the team at Sendle are solving a critical issue for their customers in the fast-growing SME eCommerce sector with their innovative business model,” Neil Brown, Federation’s head of private equity, was quoted as saying.
Brown would be joining Sendle’s board following the deal.
Federation was launched in October 2018 by a group of former Macquarie Group executives. The firm focuses on the renewable energy and real estate sectors. Meanwhile, the private equity division aims to provide capital solutions through equity, preference equity and structured financing investments, according to its website.
By the time of the launch, Federation said it targeted to raise A$500 million as the initial capital base.