When the first wave of the Covid pandemic upended the country, e-commerce boomed as people made purchases online and opted for delivery or curbside pickup. Now, two years later, in-store shopping has returned, but online shopping is still thriving. As a result, e-commerce startups have seen funding come their way.
In Chicago, Shipfusion is the latest e-commerce startup to reel in new capital. On Wednesday, the company announced it secured a $40 million growth equity investment from Kayne Anderson Capital Advisors.
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Founded in 2014, Shipfusion owns and operates several fulfillment centers in Canada and the U.S. but also develops e-commerce and logistics tech solutions for retailers and brands. Its software offers integrations with other platforms — such as Amazon Fulfillment, Magento and Shopify — and helps brands and retailers process shipments and returns. Shipfusion’s digital solutions can also help clients book and track freight transportation through its platform.
“Shipfusion solves fundamental pain points for the e-commerce shipping and fulfillment industry in a fast-growing but deeply fragmented market,” Leon Chen, managing partner at Kayne Partners, said in a statement. “Shipfusion has cemented itself as a critical solution for small and mid-sized retailers needing to navigate a quickly evolving and highly complex landscape.”
With the investment, Chen is also set to join Shipfusion’s board of directors.
Shipfusion currently owns and operates three distribution centers in Chicago, Los Angeles and Toronto. It also recently opened an approximately 250,000-square-foot warehouse in Las Vegas. According to the company, its warehouses are strategically located to support its customers in their shipping needs.
With the new funding, Shipfusion is planning to expand globally and will open new warehouses in more locations. The company, which was ranked on the Deloitte 2021 Technology Fast 500 List, will also focus on making improvements to its platform.