In response to the increased e-commerce growth during the pandemic, warehousing and shipping have become crucial for businesses. While Amazon’s “Fulfilled By Amazon” service has thrived on its own platform, smaller businesses selling on platforms like eBay and Shopify often seek more affordable alternatives. This has created a market opportunity for tech-enabled warehousing startups.
Key Takeaway
Tech-enabled warehousing startup Huboo has raised an additional £29 million ($36.6 million) from existing investors, bringing their total equity raised to £122 million (
54 million). With operations spanning across Europe, Huboo offers an alternative to Amazon’s FBA service, catering to smaller businesses selling on platforms like eBay and Shopify. The demand for cost-effective e-commerce fulfillment has become crucial in the post-pandemic world, with startups focusing on integrated logistics and software solutions.
Raising capital to meet the demand
Huboo, a UK-based startup, has recently secured an additional £29 million ($36.6 million) in funding from existing investors, including Ada Ventures and Maersk. This brings their total equity raised to an impressive £122 million ($154 million). The funding round also involved debt investment from HSBC and Blackrock, although the specific details were not disclosed.
A growing player in the market
Huboo, founded in 2017 by CEO Martin Bysh and CIO Paul Dodd, has quickly emerged as a strong competitor to Amazon’s FBA service. The company currently operates ten warehouses across Europe and integrates with various sales platforms, including TikTok, Amazon, eBay, and Shopify.
Notably, Huboo’s services extend beyond the UK, with operations also covering the Netherlands, France, Spain, and Germany. With early-stage investors such as Stride, Ada Ventures, Hearst, Episode 1, and Maersk Growth on board, Huboo has positioned itself strategically in the market.
The importance of cost-effective e-commerce fulfillment
As consumers have adapted to on-demand services in the post-pandemic era, the race to provide cost-effective e-commerce fulfillment has become increasingly important. Startups like Huboo have recognized the need for fully integrated logistics, supported by comprehensive software solutions, to achieve success in this space.
