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Florida-based logistics provider ShipMonk raises $290 million on the back of rising eCommerce demand

Florida-based logistics provider ShipMonk raises $290 million on the back of rising eCommerce demand

Jan Bednar began ShipMonk with $70,000 in winnings from a string of scholar marketing strategy competitions and launched the enterprise that simply closed on $290 million in new funding from a small warehouse with no air con in the course of Florida.

While Bednar’s new places of work are nonetheless contained in the warehouse his firm operates, they now have air con… and a $290 million financing spherical from Summit Partners to develop its enterprise.

The Ft. Lauderdale, Fla.-based ShipMonk gives a slew of delivery and logistics providers for small to medium-sized eCommerce companies and proper now — given the persevering with COVID-19 pandemic — enterprise is nice.

“We assist SMBs and mid-market direct to shopper corporations handle their provide chains. Help get their merchandise from suppliers to services and join with all of their gross sales channels together with B2B … order administration, transportation administration, reverse logistics,” stated Bednar. 

The firm’s largest clients can ebook wherever from $150 million to $250 million in income, however most of ShipMonk’s clients are literally small companies pulling in between $1 million and $10 million on common.

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It’s for these companies that ShipMonk will fill its warehouses in Pennsylvania, California and Florida with 60,000 inventory holding models — managing round 50 completely different objects for every buyer it serves.

Bednar stated ShipMonk would use the brand new money to proceed to improve its automation providers and improve its staffing whereas additionally seeking to increase internationally.

Profitable from the outset, ShipMonk simply got here off certainly one of its finest years, taking in upwards of $140 million in income. 

Bednar started the enterprise alone, however shortly introduced on co-founders Kevin Seitz, who handles advertising and marketing for the enterprise, and Bosch Jares, a fellow native of the Czech Republic (like Bednar) who serves as the corporate’s chief know-how officer.

The story of how Jares joined the enterprise is indicative of the kind of hustle that’s allowed Bednar to develop a booming tech and logistics enterprise from the Ft. Lauderdale seashores.

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It was the Florida climate that bought Jares, a university scholar from one of many Czech Republic’s high technical establishments, on the transfer to ShipMonk. Bednar had posted an internship alternative to work (unpaid, however providing room and board) at his firm on a university job board in the course of January. The functions got here pouring in, nevertheless it was Jares, a programmer who had been working with computer systems since age 14 who took the slot.

The relaxation… is ShipMonk historical past. Jares constructed the majority of the backend for the corporate’s preliminary providers spending almost 20 hours a day coding.

 The thriftiness and arduous work has gained ShipMonk a booming enterprise that has grown from 15,000 sq. ft of warehousing house into almost 1 million sq. ft of cupboard space and a logistics service that spans the U.S. 

Timing for the brand new spherical couldn’t be higher, as National Retail Federation estimates are banking on a 20% bump in new on-line gross sales — which may attain $202 billion this 12 months. 

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Black Friday alone raked in $9 billion in on-line purchases, in line with knowledge from Adobe Analytics supplied by the corporate, and shopper spending is just going to proceed to maneuver on-line because the pandemic continues to threaten the well being and security of American customers.  

ShipMonk’s know-how integrates with buying cart and market platforms like Shopify to import orders throughout gross sales channels, that are then processed on the firm’s warehouse areas. Customers can save as much as 50% on their operational prices, in line with the corporate.

“We imagine ShipMonk actually demonstrates the ability of a bootstrapped, sturdy progress mindset. Jan recognized a big hole out there and, along with the ShipMonk staff, has scaled the enterprise in a deliberate and capital environment friendly method to handle that want. The outcomes have been spectacular,” stated Christopher Dean, a Managing Director at Summit Partners who’s taking a seat on the corporate’s board. 

 

EditorialTeam

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