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ShipBob, a global logistics company, has raised $200 million in a Series E funding round, making it a unicorn. The company then provides its clients with a merchant application that allows them to keep track of inventory and connect with warehouses to choose which goods to pick and ship to fulfill orders. It works with several shipping companies to deliver products to customers. It claims to work with over 40 firms, including Amazon, Walmart, Shopify, BigCommerce, Wix, Square, and Squarespace.
ShipBob, a global logistics company, has raised $200 million at a valuation of over $1 billion in a Series E funding round led by Bain Capital Ventures. With this round, the company has attained unicorn status.
Other participants in the funding round include Menlo Ventures, SoftBank, Hyde Park Angels, Silicon Valley Bank, and Hyde Park Ventures.
ShipBob plans to use the funds to grow into new business sectors, both geographically and technologically, with additional R&D in software, robotics, and autonomous systems.
Dhruv Saxena, the CEO, said, “We constantly evaluate the needs of our merchants today, where we believe their needs will evolve in the future, and prioritize what can drive the most impact to help make them successful and differentiate from their competitors.”
In what Mr. Saxena, who co-founded the firm with Divey Gulati, describes as a “full-stack strategy,” ShipBob’s business is part infrastructure and half tech.
On the infrastructure front, the company operates warehouses in approximately 20 locations across the United States, Canada, Europe, and Australia (with plans to use some of this large round to expand that list to ten more areas), from which its customers can store and distribute the goods that they are selling online.
The firm then gives its customers a merchant application to assist monitor inventory and communicate with warehouses to select products to pick and dispatch to complete requests.
Finally, it interacts with a variety of shipping providers to send orders to clients. It claims to work with more than 40 companies, including Walmart (to power two-day delivery) and Pachama (to carbon off-set deliveries), as well as Amazon, Walmart, Shopify, BigCommerce, Wix, Square, and Squarespace, so that people setting up sites or selling through those platforms can use ShipBob to handle orders once a customer clicks “buy.”
“Our customers are the brands, and we built ShipBob to support their business growth. A requisite to supporting their growth is offering fast and affordable shipping across any channel that they want to sell, so we do offer a ‘Prime’ style offering to the brands that we support today. For example, ShipBob merchants can offer affordable 2-day shipping directly through their website and through the marketplaces where they sell, like Amazon, Walmart, Facebook, and Google.”Dhruv Saxena, the CEO
Talking about the impact of Covid-19, he said that the pandemic accelerated e-commerce penetration in the United States by 5-7 years. While some of it may return when the economy improves, it is still greater than pre-COVID levels in almost all verticals.
He added, “Many consumers who were forced to adapt to online buying are continuing to buy things online. For example, older demographics bought online for the first time and will continue to do so. In comparison, younger demographics who bought a considerable percentage of their goods online already, increased that percentage while the size of their buying power increased as well.”
“The fastest-growing e-commerce brands recognize that world-class fulfillment increases revenue and builds customer loyalty. These leading brands are partnering with ShipBob as the one-stop cloud logistics platform to manage and deliver their merchandise.”Ajay Agarwal, a partner at Bain Capital Ventures and board member in ShipBob