Riverwood Capital invests in ShipHero to accelerate its product roadmap and consolidate its leadership in helping brands and mid-large merchants with their ecommerce shipping and fulfillment needs
ShipHero, the leading e-commerce fulfillment technology and outsourced fulfillment provider, announces today the close of a $50 million round led by high-growth tech investor Riverwood Capital. ShipHero provides a best-in-class warehouse management software-as-a-service platform for companies that want to ship from their own facilities, as well as a next generation outsourced fulfilment service to DTC brands and merchants utilizing ShipHero’s owned and operated facilities. The business ships out of three warehouses strategically located across the US; that number is expected to grow to ten by the end of 2021.
ShipHero serves more than 5,000 mid-to-large brands and merchants, including several Fortune 500 customers, and focuses on providing the most efficient and tech-driven solution for its customers to scale their ecommerce operations while delivering a superior shipping and digital experience to their consumers.
This primary investment represents ShipHero’s first institutional funding. CEO and Founder Aaron Rubin and his team bootstrapped ShipHero into a leading platform, building a SaaS solution for warehouse management and a highly-efficient and scalable outsourced fulfillment offering. The company now processes over $5 billion of ecommerce gross merchandise volume (GMV) annually, which is more than Shopify at the time of its IPO. In 2020 alone, ShipHero tripled its revenue as the company led the industry in logistics and fulfillment amid growing demand on ecommerce customers.
Prior to the investment from Riverwood, ShipHero had avoided taking venture capital or strategic funding. “We have always been focused on long-term impact and on building a solid software-driven and high-quality foundation, and for years staying independent gave us the most flexibility in how we achieve that impact,” says Aaron Rubin, CEO and Founder of ShipHero. “Our market opportunity has expanded significantly, and we have a great opportunity to accelerate our offering to clients as they digitize their businesses. The industry has raised a lot of capital recently and we were approached by high quality investors. Riverwood has a sterling reputation for allowing companies to grow in their own way and has invaluable experience with taking companies public, both of which were very important for us.”
ShipHero has built its company with a customer-first approach, continuously rolling out new technology to meet the increasing demands of the ecommerce landscape and is the leading provider of warehouse management solutions and outsourced fulfillment services to Shopify brands as a Shopify Plus partner.
ShipHero is loved by its customers with exceptional online reviews and user ratings that are significantly higher than its competitors. “It’s been incredible watching ShipHero grow into the company we are today,” adds Maggie Barnett, COO of ShipHero. “We are entering into an exciting phase with Riverwood Capital and look forward to further expanding our capabilities as the category leader in ecommerce logistics and fulfillment.”
“Demand for warehouse management and fulfillment solutions are growing at a significant pace driven by continued online and ecommerce adoption, which was only further accelerated by COVID-related lockdowns,” said Francisco Alvarez-Demalde, Co-Founder and Managing Partner at Riverwood Capital. “Brands, retailers, and merchants need to constantly improve their service and digital experience which mandates a trusted technology and fulfillment partner to ship quickly and efficiently. ShipHero has built an incredible leading platform, combining scalable and flexible software with world class and efficient operations which can ultimately help brands scale ecommerce operations while delivering the best customer service.”
“When we first met Aaron, Maggie and the team, we were drawn to their thoughtful, grounded approach to building a high-growth business,” said Joe De Pinho, Principal at Riverwood Capital. “ShipHero punches far above its weight, offering a better solution and winning market share from well-funded competitors. With a Rule of 40 metric in excess of 150%, CAC payback of a few months, a category leading software platform, and strong referrals in place from happy customers, ShipHero has reached its current growth stage and over 200 employees with only $500k in external funding. At ShipHero, the focus has always been about delivering customer satisfaction while building with scalability in mind and we are excited to support their mission to empower e-commerce merchants.”
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