September 18, 2014
Shippo has just raised $2 million in Seed funding.
The San Francisco-based startup providing e-commerce stores access to shipping features of Amazon, saw the majority of their funding come from SoftTech VC. The other investors include Version One Ventures, 500 Startups, Joanne Wilson, Slow Ventures, Fabrice Grinda, and independent angels.
With e-commerce models rapidly growing, the doors have been opened for companies like Shopify to make it easy for SMBs to set up online stores. But across the board shipping has been the category lacking the most innovation, according to Shippo.
To that end Shippo has built an API designed to make shipping simple and cheap by virtually aggregating its entire shipping volume, getting steep discounts, and then passing the information to the customers. They’re also paving the way for easier international expansion by lowering international shipping costs and enabling automated printing of customs forms.
“Dealing with shipping is a genuine challenge for any e-commerce or marketplace operator,” says Jeff Clavier, Managing Partner of SoftTech VC and a board member at Shippo. “It doesn’t get any simpler with scale – quite the contrary.”
Part of what drew SoftTech’s eye was the fact that Shippo has, to date, more than 5,000 customers and has struck major partnerships with GoDaddy, PayPal UK, Memebox, Shop Hers, Vinted, and the Mercari app. The powerful API, streamlined user interface, and discounted rates have set Shippo up for a bright future, and we’re going to follow them closely and see where they go from here.
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