Australia’s Shippit acquires SG logistics firm in $11m deal

Australian logistics company Shippit has acquired Singapore-based tech developer Luwjistik in an A$18 million (US$11.3 million) deal.

Shippit co-founder and co-CEO William On will transfer to Singapore to lead the startup’s Southeast Asia operations with a 50-strong team, the firm said in a statement.

Luwjistik co-founders (from left) Syed Ali Ridha Madihid and Wong Yingming / Photo credit: Luwjistik

The Sydney-based company has been operating in the region since 2020. Following the acquisition, Shippit will double down on growth in Southeast Asia by leveraging Luwjistik’s tech, expertise, and local network.

Luwjistik co-founder and CEO Syed Ali Ridha Madihid said both companies can now offer their services to businesses of all sizes in Indonesia, Malaysia, Thailand, and the Philippines.

The acquisition also marks the exit of Luwjistik’s investors, including East Ventures, Arise Fund, Global Founders Capital, and TriHill Capital. The named investors disbursed US$1.1 million for Luwjistik in March.

See also: Singapore’s Luwjistik onboards Trihill Capital in seed extension round

Founded in 2021, Luwjistik counts Ninja Van, J&T Express, and JNE Express as network partners. It also provides solutions for major logistics players in the region such as POS Malaysia, Lion Parcel, and Summer International – Gushcloud’s social commerce arm.

Meanwhile, this is Shippit’s second acquisition for the year. It previously bought Australian last-mile tech firm Premonition in March.

Shippit said that over 40 million deliveries were booked through its platform in its 2022 financial year. It has also seen US$5.5 billion worth of ecommerce transactions fulfilled through its platform since 2014.

The firm previously raised US$48 million in a series B2 round led by Tidal Ventures and Tiger Global.

Currency converted from Australian dollar to US dollar: US$1 = A$1.59.