Cubyn Secures €35 Million to Expand Logistics Network

Cubyn, a logistics startup headquartered in Paris, specializing in outsourced fulfilment and delivery solutions for e-commerce businesses, has successfully secured an additional €35 million in funding.

Funding Details and Investors

This funding round was spearheaded by Eurazeo and Bpifrance Large Venture, with further investment from First Bridge Ventures and Fuse Venture Partners. Existing investors, including DN Capital, 360 Capital, the Bpifrance Smart Cities fund, and BNP Paribas Développement, also participated in this round.

Expansion Plans and Team Growth

The newly acquired capital will be strategically allocated to bolster Cubyn’s team. The company intends to more than double its current workforce of 85 employees, exceeding 170 personnel by the close of 2021.

Furthermore, Cubyn plans to broaden its service availability internationally. Initial expansion will focus on Spain and Portugal, with launches scheduled for the following month.

New Facility and Automation

A significant component of this expansion includes the opening of a 25,000 square meter, fully automated facility located in the Paris region.

This new facility is designed to optimize operations, leading to reduced costs and faster delivery times.

Evolution of Services: From Delivery to Fulfilment

Initially focused on pickup and delivery services, Cubyn broadened its offerings 18 months ago, following a €12 million Series B funding round.

The launch of Cubyn Fulfilment marked the company’s entry into the fulfilment sector.

Capitalizing on E-commerce Growth

Cubyn’s integrated fulfilment solution encompasses the complete process, from inventory management within their warehouses to order processing.

This strategic move positioned the company to capitalize on the surge in e-commerce, driven by factors such as the recent pandemic, the growth of Direct-to-Consumer (D2C) models, and the increasing popularity of online marketplaces.

Currently, prominent marketplaces like Back Market, Rakuten, Mirakl, and Fnac are utilizing Cubyn’s services.

Proprietary Technology and Cost Efficiency

Cubyn’s proprietary technology is central to its operations, streamlining merchant logistics through a range of tools.

These tools include web applications and advanced optimization algorithms, alongside warehouse robotics.

The company asserts that its integrated fulfilment solution can be delivered at a significantly lower cost compared to industry standards.

This efficiency has resulted in substantial growth, with gross merchandise value (GMV) increasing from €30 million to €250 million in 2020.

Statements from Leadership

“Cubyn is disrupting the traditional e-commerce third party logistics market from the ground up, offering a better, faster and cross-border service at a 30% lower price,” stated Cubyn co-founder and CEO Adrien Fernandez-Baca.

“We are also providing merchants with not just additional revenue streams, but with our international roll out, we are now opening up new markets for them, outperforming other options available in terms of cost and delivery speed by far”.

Investor Perspective

Antoine Izsak at Bpifrance Large Venture fund commented, “COVID has accelerated the need for merchants to have a reliable, scalable and tech fulfilment solution.”

“We’re excited to work with Cubyn to scale their business across Europe in the next few months”.

Future Shipment Ratio

Fernandez-Baca added, “Today 85% of our shipments are in France, 15% international. With the funding, the ratio is predicted to change to 50-50”.