Today has seen the announcement by ecommerce technology company ShipBob that they have secured $17.5 million of new funding to further fuel its growth and expand its current software platform. The Series B financing round was led by leading venture capital firm Bain Capital Ventures and had additional participation from FJ Labs LLC, Hyde Park Venture Partners, Hyde Park Angels and FundersClub.
ShipBob was founded in 2014 and went through the Y Combinator accelerator the same year. It currently employs 35 people in its head office in Chicago and has grown its sales and marketing team in the past 12 months and it intends to employ more than 100 over the next two years.
ShipBob’s ecommerce solutions are designed to cater for those smaller ecommerce providers who find themselves having a need for fulfillment services. One of their key offerings is the complementary order management tools that are useful for those businesses who are selling across multiple channels such as Amazon or Shopify. ShipBob’s offering enable smaller ecommerce retailers to hold their own against larger retail giants such as Walmart and Amazon who both have the advantage of high volume shipping discounts.
The new capital will be used to open more fulfillment centres as well as increasing its headcount. The additional warehouses will be located in areas that have a higher shopper density which will enable companies to ship both quicker and more efficiently to the vast majority of their customers. The company will undertake extensive analysis of its order data to ascertain where these warehouses will be. The additional headcount will include more engineers to help build out its software platform. The platform helps retailers to decide where to place their inventory by identifying the closest ShipBob warehouses to their areas of highest demand.
“The investment from Bain Capital Ventures gives us the ability to scale faster and serve the needs of this rapidly growing ecommerce market,” said Dhruv Saxena, co-founder and CEO of ShipBob. “We are raising the bar for what best-in-class service means in the shipping and logistics space. We will continue to innovate and expand to serve e-commerce businesses across the country.”
“ShipBob has quickly developed a leadership position in the e-commerce market, offering a unique software-and-services platform that meets the need for fast fulfillment,” said Ajay Agarwal, managing director of Bain Capital Ventures. “What Dhruv, Divey and team have developed over the last three years is impressive, and we’re excited to help them grow ShipBob into a shipping and logistics powerhouse.”
The investment, led by Bain Capital Ventures is hoped to be as successful as their last funding of a similar company. The firm were early stage investors in Kiva Systems, which revolutionised ecommerce distribution with a combination of robots, mobile shelving and software. The company has since been acquired by ecommerce giant Amazon who paid $775 million for it in 2012.