Shippo, a startup that provides ecommerce companies with an automated system for implementing shipping for their products, announced today that it closed a series B funding round worth $20 million to help propel its business.
Bessemer Venture Partners led the round, which included participation from Union Square Ventures, SoftTech VC, VersionOne Ventures, and 500 Startups. The news comes a little over a year after Shippo raised a $7 million series A, which Union Square Ventures led.
Jeremy Levine, a Bessemer partner who was also involved with the firm’s investment in ecommerce platform Shopify, spearheaded the deal and will join Shippo’s board of directors as part of the investment.
Shippo’s product is an automated system that companies can implement in order to provide users with a wide variety of shipping options from ecommerce sites. The company is able to provide its customers with easy access to several different shipping providers, rather than requiring firms to implement several different systems.
The cash will be used to fuel the expansion of Shippo’s product to both reach more small and medium businesses, as well as work with larger companies. The startup has been working with eBay as one of its major customers, and is now powering fulfillment for all of the online auction site’s orders in the U.S. and Canada, cofounder and CEO Laura Behrens Wu told VentureBeat in an interview.
Shippo wasn’t planning on fundraising, but was approached by Bessemer for this round. Wu also said that the team is looking forward to working with Levine, given his Shopify expertise.
Shippo is one part of a cohort of companies that are working to provide retail businesses with easy access to necessary building blocks without requiring them to take care of a complicated process themselves. Others include Square, Stripe and Shopify, which are all designed to provide different parts of retail infrastructure.