Shippit bags A$30m in Series B round to drive regional expansion

SHIPPIT, an Australian e-commerce and logistics company, has raised A$30 million (S$29.8 million) in a series B equity round to expand in South-east Asia, potentially tapping new markets in Philippines and Indonesia.

Led by US-based technology investment firm Tiger Global, the round will also provide fresh funds for product development and new hires, the firm said on Tuesday. It has raised A$11 million since 2017.

With the fresh funds, Shippit plans to add 100 new hires across the Asia-Pacific, doubling its staff count, co-founder and co-chief executive William On told The Business Times. This will include 50 software developers to "support growth and optimise products regionally".

The logistics startup provides a platform which enables retailers to choose different couriers, control how the goods are delivered and track orders.

It was launched in Singapore in May this year, and in Malaysia in August. The firm has been experiencing a 50 per cent month-on-month growth, said Mr On. "We expect to grow at least 100 per cent year on year for the next three years."

Mr On added that the funds raised will enable the company to continue with the rapid growth chalked up this year, due to a surge in e-commerce activity during the global pandemic.

He added: "Scalable logistics is one of the fundamental enablers for e-commerce in the Asia Pacific, and this capital raise will enable us to advance our core business of providing the technology retailers need to grow."

Shippit recently partnered with Singapore Post to offer discounted rates for small and medium-sized enterprises which use its platform to deliver parcels through the national courier.

Shippit currently handles around five million deliveries a month in Australia, and is "growing significantly" in Australia and South-east Asia, it said.

"Our Australian operations have seen a three-fold increase in delivery volumes over the past 12 months," he told BT.