Shippit Raises $22.2M to Scale E-commerce Fulfillment

Shippit, an e-commerce logistics platform headquartered in Sydney, Australia, is planning an expansion into Southeast Asia following a successful $30 million AUD (approximately $22.2 million USD) Series B funding round. Tiger Global spearheaded the investment, with additional participation from Jason Lenga. Established in 2014, Shippit’s core technology streamlines order fulfillment processes, encompassing carrier selection, package tracking, and returns management.

This Series B investment, increasing the company’s total funding to $41 million AUD since 2017, will facilitate expansion into the Southeast Asian market and enable a doubling of the company’s workforce through the addition of 100 new employees, including 50 software developers.

Currently, Shippit processes five million deliveries monthly within Australia, serving a diverse range of retailers such as Sephora, Target, Big W, and Temple & Webster. The company initiated its Southeast Asian presence with a launch in Singapore in May, followed by Malaysia in August.

According to co-founder and co-chief executive officer William On, speaking with TechCrunch, “Southeast Asia is projected to become the world’s largest e-commerce market within the next five years, and the potential market for us in Southeast Asia is already five times larger than Australia and twice the size of the U.S.”

Shippit is also evaluating potential expansion into the Philippines and Indonesia, anticipating a minimum year-over-year growth rate of 100% for its Southeast Asian operations over the next three years.

Furthermore, Shippit’s operations in Australia have experienced a threefold increase in delivery volumes over the last year, On noted.

The surge in online purchasing, coupled with disruptions in the supply chain and logistics networks during the COVID-19 pandemic, has underscored the value of software solutions like Shippit. Prior to the pandemic, e-commerce in the Asia-Pacific region was already experiencing substantial growth, with Forrester predicting an increase in online retail sales from $1.5 trillion in 2019 to $2.5 trillion in 2024, representing an 11.3% compound annual growth rate.

Other companies operating in this sector include ShipStation, EasyShip, and Shippo. Shippit differentiates itself by focusing on simplifying online fulfillment for merchants, offering features such as seamless integration between online stores and its allocation engine, which automatically identifies the optimal carrier for each order, as explained by On.