Shipping startup Shippo has raised $45 million in funding from its existing investors for furthering its work toward offering an Amazon Prime-like service for small to medium-sized businesses (SMBs).
The company, which now has a valuation of nearly $500 million, plans to use the funding to revamp its core products, extend shipping capabilities to more online platforms and marketplace, hire 150 employees to expand its global presence. The startup has also opened a hub in Austin, Texas, to grow its workforce.
Shippo’s service currently integrates with eCommerce platforms such as BigCommerce, Shopify, Square, GoDaddy, and Wix. It offers services to marketplaces several major services such as OfferUp Depop, eBay Canada and Mercari.
“Our vision is to build Amazon Prime for everyone else,” said Laura Behrens Wu, CEO and co-founder of Shippo. “We want to put [SMBs] at a competitive advantage by setting a new bar for SMB shipping.”
In 2019, the startup signed a partnership with UPS to reduce its shipping costs and waive fees for 35,000 small to medium-sized online retailers using Shippo’s platform.
Last year, the company saw total shipping spend on its platform more than double, growing three times faster than the broader U.S. eCommerce shipping market, which grew more in Q2 2020 than the previous five years combined.