Shippo raises $45M more at $495M valuation as ecommerce booms – ClearTips

This morning, a software company, which provides shipping-related services to e-commerce companies, announced a new investment of $ 45 million. The new capital values ​​a startup worth $ 495 million. ClearTips is calling the new funding a C Series D because it is a price round that follows its C Series; The company did not award the round a moniker.

Shippo’s 2020 Series, a $ 30 million transaction that was announced last April, valued the company at about $ 220 million. D1 Capital led both CC and D rounds of Shippo, meaning it was content to pay nearly twice the company’s equity in 2021 in 2020. Remember that (investors doubled in the previous round, as lead investors in consecutive rounds are no longer considered a negative sign related to startup quality, but A. Affirmative Pointer.)

Why did you raise money so quickly after your last round? According to the CEO and founder of Shippo Laura Behrens Vu, His company made material progress last year on customer acquisition and partnership. This led to a decision around Shippo’s Q4 board meeting time with its investors that it was a good time to invest more capital in the company.

Time is appropriate in a sense. As Shippo grows its customer base, it can negotiate better shipping deals with various providers, who, in turn, help it attract its customers. Behrens Wu said in an interview with ClearTips that while his company was helping deliver just a few packages to its initial customers, the shipping companies it supports on its platform did not want to meet with the startup. Now heavily armed, Shippo can recycle customer demand to partner leverage, improving its overall customer offering.

Behrens Vu said that Shippo had acquired such a partnership with UPS before extending its new phase.

Turning to growth, Shippo doubled its platform spend, or “GPV”, last year. GPV is the abbreviation of the company Gross mail volume. It largely tracks with revenue, confirmed ClearTips. So Shippo doubled its top-line last year. it’s a good thing. Shippo wants to do it again this year, Behrens Wu told ClearTips. The startup will also double its headcount this year, which will include about 150 people.

Now flush with more capital, what’s next for Shippo? According to its CEO, the startup wants to invest more in the platform (where Shippo is cooked in the market, for example), international expansion (only “a bit” of international shipping, per Behrens Wu) and double-downs is. It considers its core customer base.

ClearTips was curious about how extensive the Shippo product could take from its original home in shipping labels. The startup said there is plenty of space in a packaged journey from pre-purchase to where its company can expand. However, Behrens Wu cautioned that such a wide spread of product work is not going to focus immediately on his company.

Let us see how long the current ecommerce boom lasts and how far this new capital can take Shippo. If it doubles in size again this year, we will have to start its IPO countdown in mid-2022.

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