This funding round marks the largest venture-backed Series A for a supply chain software startup in industry history
Shipium, the technology-driven supply chain and logistics company seeking to solve “the Prime problem,” announced the raise of its $27.5M Series A led by New York-based private equity and venture capital firm Insight Partners. Shipium was founded by the veteran teams that built the technology powering Amazon Prime and Zulily’s supply chain. This round brings Shipium’s total funding to $38.7M since its inception in 2019, furthering its mission to help retailers compete for customer growth and loyalty through a premium shipping experience.
Last-mile delivery is the highest operating expense in e-commerce, typically around 12% of annual online sales. Meanwhile, fast and free shipping has been the key competitive growth driver for Amazon’s continual expansion. The rest of the industry struggles to reconcile how to reduce shipping costs while improving delivery speeds as a way to compete for customer growth and loyalty. The secret is coordination across fundamental stages of the supply chain, and that’s where Shipium helps. This Series A validates the idea that retailers are finally prioritizing the shipping experience just as much as the shopping experience, a key in the fight for market share.
Latest Fintech News: Commonwealth Financial Network Selects Xtiva for Enterprise-wide SPM Technology Solution
“The pandemic has accelerated e-commerce growth to unprecedented heights, but major retailers continue to grow in both revenue and market share, largely due to its superior shipping experience,” said Brad Fiedler, Vice President of Insight Partners. “Jason, Mac, and the team’s background positions them as the foremost experts on how to help the rest of the retail industry compete for customer growth and loyalty. Insight Partners is excited to invest in Shipium to further help change the landscape of the e-commerce industry.”
Latest Fintech News: Splitero Launches with $5.8 Million in Seed Funding and $1 Billion in Capital to Provide Better Options to Access Home Equity
The key ingredient to Shipium is data modeling. The platform takes decisions that are currently done via human-driven rules and spreadsheets, such as choosing the cheapest and fastest shipping method, and automates them via machine learning and logic. Shipium is able to achieve desired outcomes around cheaper shipping costs and faster delivery speeds due to the platform’s coordination of previously fragmented and static decisions across the supply chain. The company will use the Series A funding to invest in engineering talent to expand platform capabilities that coordinate more parts of the supply chain, including network optimization and sophisticated order routing.
“Prime is the problem for everyone else because it focuses on what customers want, like faster and cheaper shipping options and a better delivery experience,” said Jason Murray, CEO and co-founder of Shipium. “Modern technology that unifies decisions throughout the supply chain in service of those last-mile goals is the only way to compete for customer growth and loyalty. This Series A funding indicates that the industry is understanding this. We’re excited to extend our offerings to retailers in order to give consumers what they want.”
Latest Fintech News: Telcoin Now Connects Any US Bank Account to DeFi Trading in Updated Mobile App
[To share your insights with us, please write to sghosh@martechseries.com]
