PRNewswire/ — To address “the Prime dilemma,” Shipium announced today a $27.5 million Series A headed by New York-based private equity and venture capital firm Insight Partners. Shipium was founded by the same teams who built Amazon Prime and Zulily’s supply chain technology. Shipium has already raised $38.7 million since its founding in 2019, advancing its objective to help retailers compete for customer growth and loyalty through premium shipping.
Last-mile delivery accounts for roughly 12% of annual internet purchases. Fast and free shipping has been Amazon’s main competitive growth driver. The rest of the business is unsure how to compete for client growth and loyalty while lowering shipping costs. Shipium can aid with supply chain coordination across essential phases. This Series A confirms that retailers are finally valuing delivery as much as shopping, a vital in the battle for market dominance.
Insight Partners’ Vice President of Research Brad Fiedler said the epidemic has spurred e-commerce growth to record levels, but big retailers are still growing revenue and market share. “The team’s expertise positions them as the preeminent experts on how to help other retailers grow and retain customers. Insight Partners is excited to invest in Shipium and assist transform the e-commerce environment.”
Shipium relies on data modelling. The software automates decisions typically made by humans, such as choosing the cheapest and fastest shipping method, using machine learning and logic. Shipium’s technology coordinates previously fragmented and static supply chain decisions, resulting in lower shipping costs and shorter delivery times. The Series A financing will be used to hire more engineers to develop platform features such as network optimization and advanced order routing.