Sequoia-backed Shipsy nets $25m series B money (Update)

Update (February 23, 4.30 pm): Updated with details on series B funding.

Shipsy, an India-based logistics management platform, has raised US$25 million in a series B round co-led by A91 Partners and Z3 Partners. Existing investors Info Edge and Sequoia Capital India’s Surge also participated in the round.

Team Shipsy/ Photo credit: Shipsy

The company plans to use the funding to grow in West Asia, India and Southeast Asian markets while accelerating global expansion into new markets such as Europe and US. In addition, Shipsy will also be using the funds to drive technological innovations.

Strengthening its presence in SEA, Shipsy will also set up a regional headquarters in Indonesia.

The new headquarters will provide faster, better, and localized support to Shipsy’s existing partners and fuel new opportunities in Singapore, the Philippines, Malaysia, Thailand, Vietnam, and Indonesia, Soham Chokshi, the firm’s CEO and co-founder, told Tech in Asia.

In Southeast Asia, Shipsy’s customers include a tire manufacturer, a quick-commerce grocery provider, an international pizza delivery chain, a Fortune 100 global retailer, and a manufacturer and distributor of confectionery, among others. The company, however, did not reveal the names of these clients.

“Owing to our ongoing aggressive marketing and sales efforts for Shipsy and demand for our products, we can expect a 4x to 5x annual growth in the SEA region,” said Chokshi.

Shipsy, founded in 2015, claims to enable express logistics providers, restaurant chains, quick commerce brands, and retailers to reduce last-mile delivery costs by a quarter, shorten delivery turnaround time by 30%, and ramp up net promoter scores by 18%. The company also drives down carbon emissions by reducing the distance travelled, the firm said. The SaaS provider also helps manufacturers, exporters, and importers cut freight costs by 10%.

The startup will also look to hire local talent from Indonesia, the Philippines, Malaysia, and Thailand across sales, tech, business development, and other functions.

In 2020, Shipsy had raised US$6 million in a funding round co-led by Sequoia Capital India’s Surge and Info Edge.