Shippo, an American software shipping services company, raised an additional US $ 45million investment in Q4 2020. In what is termed as a Series D funding, the company saw major participation from D1 capital.
In Q2 of 2020, Shippo had raised US $ 30 million in its Series C round which had also seen avid participation from D1 capital. At that time the company was valued at around $220 million. This time all of the existing investors doubled down and generated $45 million more. The company is now valued at around half a billion.
In this context, it is important to recall that doubling-down in successive rounds by previous investors is no longer considered a negative indicator, in fact, we might even consider it as a positive sign for the company.
Why and what next?:
One might wonder what was the need for the investment almost immediately after the previous round. According to Laura Behrens Wu, CEO and founder of Shippo, the company had seen great progress in the acquisition of customers and garnering of partnerships over the previous year. Hence sometime around the Q4 board meeting, a decision was made to raise more funds.
The company is now making headway in building the shipping platform of the 21st century. The goal is to provide best-in-class shipping to every e-commerce merchant. The startup is also believed to invest more in platforms, expand its international reach and increase its headcount by adding an additional 150 people.
About Shippo: Launched in October 2013 with its headquarters in Dallas (Texas), Shippo is a software company that assists e-commerce businesses, online platforms and marketplaces in harmonising shipping with multiple carriers through their API and web application.
Essential distinguishing features of Shippo include its web app, US address validation, discounted USPS rates, global carrier discounts, API access, and email support.
Over the years Shippo has garnered partnerships with various technology and e-commerce platforms. Its key partners include Bigcommerce, Squarespace, Weebly, GoDaddy, Webflow, Amazon, eBay, Selz, Arcadier, Magento and more.
What the CEO has to say:
“As a first-time founder, I am keenly aware of needing experienced operators in our leadership team to help us in our phase of hyper-growth. When I hire leaders, I look for people who have stayed at a high-growth company for many years, so I know they can see around corners. Our vision is to build Amazon Prime for everyone else. We want to put SMBs at a competitive advantage by setting a new bar for SMB shipping. I’m more excited about this vision than ever.”– Laura Behrens Wu, CEO and founder of Shippo.
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