The money keeps flowing into the last-mile logistics space and the latest company to reap the benefits is cloud-based platform ShipBob, which announced a $200 million Series E round Tuesday morning.
The new funding, which brings total funding in the company to $330.5 million according to Crunchbase, doubles ShipBob’s valuation from its Series D funding round in September 2020 to more than $1 billion today, it said in a release.
The Series E financing was led by Bain Capital Ventures, which led ShipBob’s Series B round in June 2017, with participation from prior investors including SoftBank, Menlo Ventures, Hyde Park Venture Partners, Hyde Park Angels and Silicon Valley Bank.
“Seven years ago, we found it was difficult as a small — but growing — e-commerce business owner for us to provide our customers with a delightful shipping experience. ShipBob was founded and built to solve that challenge,” said Dhruv Saxena, CEO and co-founder of ShipBob. “We are extremely proud that more than 5,000 businesses use ShipBob for all of their e-commerce fulfillment needs today and look forward to continuing that mission as shifts to digital continue to accelerate across our customers’ industries. As we increase our international reach, omnichannel partnerships and B2B capabilities, it still feels like day one for us.”
Since the Series D round, ShipBob has grown from 10 fulfillment centers to 24 facilities and expanded to the U.K. and Australia. ShipBob’s software includes pre-built integrations as well as the ability to custom build. It has integrations with Shopify, WooCommerce, Squarespace, Wix, BigCommerce, Walmart and more. The integrations allow merchants to offer shipping services to their customers without the need to be involved with the fulfillment themselves.
Returns management, inventory management, financing tools and other solutions can also be activated in ShipBob’s apps marketplace. The company utilizes its own warehouse management system to handle many of these tasks.
“The fastest-growing e-commerce brands recognize that world-class fulfillment increases revenue and builds customer loyalty,” said Ajay Agarwal, partner at Bain Capital Ventures and a member of ShipBob’s board of directors since June 2017. “These leading brands are partnering with ShipBob as the one-stop cloud logistics platform to manage and deliver their merchandise to customers around the world. ShipBob’s torrid growth rate and impeccable levels of customer success motivated us to double down and lead this round.”
ShipBob co-founder and President Divey Gulati said the latest investment round will allow the company to continue to invest in product and technology development.
The free two-day shipping program covers the continental U.S. and has a 95% on-time delivery rate, ShipBob said. The company’s platform includes inventory visibility, order and shipment tracking across all sales channels and locations, and advanced analytics into shipping performance, inventory allocation and fulfillment costs.
Earlier this year, ShipBob announced a carbon offset program with Pachama, which offers verified forest projects and helps businesses buy offsets. ShipBob customers using the Pachama tool will see monthly shipping emissions calculations tracked by Pachama. They can use an app to purchase carbon credits as well as offer tools to allow brands to share their commitment to sustainability, ShipBob said.