Fast-growing Sydney-based logistics tech start-up Shippit has banked a $65 million cheque from big name US and Australian investors, tripling its valuation in less than 18 months to $300 million.
The company, which acts as a middleman in the logistics industry enabling less waste and quicker deliveries, attracted a pre-money valuation of $300 million as part of this round, up substantially on its $100 million valuation achieved in December 2020. Shippit co-founders William On and Rob Hango-Zada, pivoted their business and have seen its success soar.Shippit’s existing backers, Tiger Global Management and Grant McCarthy’s Tidal Ventures, led the raise, while Ian Beatty and Leigh Jasper’s secondary fund, SecondQuarter Ventures, also snapped up a position.
The raise was composed mainly of primary capital, but the secondary component was understood to be worth more than $5 million. In the past three years, Shippit has increased its revenue 100 per cent each year and its co-founder and co-CEO, William On, said the business operates on SaaS-like metrics with earnings margins of 75 per cent to 80 per cent.“We have been pretty capital efficient, and we were profitable for the whole of 2020 and that led Tiger and Tidal to see our ability to capitalise on the opportunities we have and see other opportunities in new growth vectors,” he said.