Australian logistics startup Shippit raises $22m in Tiger Global-led round

Shippit, an ecommerce and logistics company, said it raised A$30 million (roughly US$22.3 million) in a series B round led by US-based technology investment firm Tiger Global alongside the company’s local representative Jason Lenga.

The Australian logistics firm provides customized delivery services to retailers, with a tracking option for retailers and the customers. This allows its clients to accept cash on delivery, reducing friction from cross-border shipping.

The money raised from the funding round will be used for the company’s expansion in Southeast Asia, as well as further product and technology development. It will also invest in growing its workforce, according to a statement.

“Ecommerce is how retail survives, revives, and thrives,” said CEO William On, adding that “scalable logistics is one of the fundamental enablers for ecommerce in the APAC region.”

The Australian logistics market represents 8.6% of the nation’s gross domestic product, according to research by Beroe. The report also expects Australia’s logistics and warehousing market to reach A$187 billion (US$138.9 billion) by 2021.

Shippit currently provides its services to companies such as Sephora, Big W, Target, and Temple & Webster and claims to handle 5 million deliveries every month in Australia.

Since launch, it has raised a total of US$9.4 million in funding over six rounds, according to data from Crunchbase. Its latest funding of over US$5.3 million was raised on December 2 last year.

In Australia, the startup competes with delivery firms such as ShipStation, Easyship, and ShippingEasy, among others.

Currency converted from AU dollar to US dollar: US$1 = A$1.35.