Shipwell

Shipwell helps companies run an integrated supply chain for more efficiently managed logistics. Their platform offers three main tools - transportation management, visibility and an integrated partner network, to track the entire lifecycle of a shipment and access a marketplace of nationwide carriers. Through Shipwell’s solutions, companies can save 5%-20% on shipping costs, increase on-time delivery by 20%-70% for an average first year ROI of ~75%. In the early days, Shipwell’s primary focus was on Marketplace, its services business. They have grown the unit to $65M GMV, with a take rate between 5-15%. Margins remained flat to negative at the time of the Series B, however, Shipwell’s primary focus for this segment is to drive up margins to 10% over time. As they’ve added more funds under management, more shipping connections and more recurring revenue, the business has been successfully scaling and margin accretive. More recently, the company expanded its focus to a software revenue line that can generate ARR in a business segment called Platform. The reason that this Series B extension is possible is because the team had to take a pause during Covid. Rather than immediately ramping up software sales, there was turn over in the team that has since been managed. However, this set Shipwell slightly behind schedule to reach the ARR necessary to raise a Series C. This round of funding will help them grow the team into an institutional grade sales unit required to meet the ARR targets. They have already demonstrated the ability to rapidly grow software sales, taking Platform ARR from $100K in 2020 to $700K as of June 2021.