US-based logistics services platform developer Flexport raised $935m yesterday in a series E round featuring internet and telecommunications group SoftBank and e-commerce software provider Shopify at a valuation of $8bn post-money.
Andreessen Horowitz and MSD Partners co-led the round with additional backing from DST Global, Founders Fund, private investor Kevin Kwok and undisclosed others, while SoftBank invested through its Vision Fund 1.
Flexport operates a cloud-based logistics system allowing customers to book shipments by air, sea, land or rail globally, offering end-to-end cargo insurance, real-time tracking and all-inclusive billing. It claims the platform was responsible for moving almost $19bn in merchandise across 112 countries in 2021 as its revenue more than doubled.
The company had not raised funding since before the pandemic, securing $1bn in a 2019 round also led by SoftBank’s Vision Fund that included logistics service provider SF Express, at a $3.2bn valuation. Its overall funding now stands at over $2.2bn.
The covid-19 pandemic has had a well-documented effect on the flow of global logistics along the entire supply chain. According to Shopify, just under 40% of e-commerce brands said they have experiences shipping issues exacerbated by covid-19, including problems with labour constraints and warehouse capacity.
Flexport chief executive Ryan Petersen said: “The global pandemic and the pressure it put on global supply chains has made the transportation of goods – something many people took for granted – a daily pain point.
“This investment signals that the market recognises the need for a tech-enabled logistics ecosystem that has the visibility and resilience to handle unexpected challenges of any scale.”
Shopify, for its part, is working on building a fulfilment and logistics network to chip away at that of rival e-commerce marketplace Amazon. In 2020, it allocated $1bn over five years towards developing a network across the US encompassing advanced warehouse technology and third-party shipping and delivery vendors.
The company acquired warehousing and fulfilment technology provider 6 River Systems in a $450m deal in 2019 and took part in a $60m round for bookkeeping services provider Bench in June 2021 and a $65m series B round for Loop Returns, which provides returns services for Shopify customers, the following month.
Flexport has also been investing in logistics-adjacent companies, backing a $25m series B round for supply chain insurance provider Parsyl last month alongside logistics provider Lineage Logistics. It contributed to a $50m series B round for Inspectorio, the developer of a quality and compliance management software platform for the supply chain, shortly afterwards.
