Parisian startup Shippeo raises €26.3M to help companies track road transport and provide more sustainable operations; here’s how

Shippeo

Paris-based Shippeo, a SaaS platform that provides real-time transportation visibility, has raised $ 32M (approx €26.3M) in a fresh round of funding. The round is co-led by Battery Ventures, (a technology-focused investment firm) and existing investors, including NGP Capital, ETF Partners, Partech, and Bpifrance Digital Venture. 

Use of the funds

Shippeo will use the current investment to strengthen its position in the market and continue to deliver product innovation.

Speaking on the development, founders Pierre Khoury and Lucien Besse of Shippeo, said, “Battery Ventures, founded in 1983, has a long track record of investing in prominent SaaS businesses in the US and Europe and partnering with management teams to help them grow their businesses smartly. With Battery’s industrial reach and strong experience in the technology sector, Shippeo will carry out its main objectives: strengthening its leading position in Europe and boosting its edge over its competitors.”

About Shippeo

The company was founded in 2014 by Pierre Khoury, Lucien Besse, David Barre, Jean-Bastien Dussart, Brice Hua, and Thibaut Morlot. 

Shippeo aims to build a data platform for the freight industry, by leveraging its growing network, real-time data, and AI to help supply chains deliver exceptional customer service and achieve operational excellence.

The company’s software-as-a-service (SaaS) platform offers an API that integrates transportation management systems as well as telematics products, ERP, and electronic logging device technology, among other data sources. This provides real-time location data, delivery tracking, and a proprietary algorithm to calculate a shipment’s Estimated Time of Arrival (ETA).

Shippeo claims to have tracked more than 140,000 deliveries per month throughout Europe for companies such as Leroy Merlin, Saint-Gobain, and Faurecia.

Solving the pain-point of the freight industry

Due to the Covid-19 scenario, the need for supply-chain visibility has been increasing more than ever. With many countries in lockdown and with unpredictable border closures, companies with advanced visibility solutions have managed to reduce the transport delays and operational inefficiencies.

Beyond tracking shipments, visibility platforms now give supply chains the data-driven transparency to meet various customer demands in uncertain and challenging market conditions.

And supposedly, this is where Shippeo stepped in and claims to have more than doubled its subscription revenues year on year.

Companies using Shippeo’s platform can now identify every pain point and inefficiency end-to-end across their global logistics operations and take action to optimise their processes. This results in lower transportation costs, increased customer satisfaction, and more sustainable operations.

Recent development

Just last October, Shippeo acquired the French company oPhone, bringing major customers in the retail and manufacturing sectors in its community. And now, the company’s total workforce has more than doubled, totaling 160 employees, of which 45% work in R&D.

In February 2020, Shippeo raised €20M in its Series B round led by NGP Capital and ETF Partners, with participation from Bpifrance Digital Ventures and Partech.

Prior to that, the company has raised €10M (2017) in Series A round from Otium Capital and Partech. In 2016, it raised €2M in its Seed round from Otium Capital, and in 2015 it raised its pre-Seed round funding of €90K.

Startups – Silicon Canals

Swedish e-scooter startup Voi is all geared up for UK launch, secures €26.3M funding

Sweden-based Voi Technology AB (“Voi”), the pan-European micro mobility startup, today announced that it has reached its first ever monthly profit at group level for the month of June 2020. Less than two years since it launched the e-scooter service now operates across 40 cities and 11 countries.

Double-digit margin

Voi revealed that in June 2020 it achieved a double digit EBITDA margin, marking a strong return to Europe’s streets for the European electric micro-mobility provider after months of disruption due to the coronavirus pandemic. The margin was achieved on sales in June that were remarkably close to sales seen in June 2019, indicating that scooter riders are returning in number to this personal mode of travel that allows people to keep socially distant and avoid crowds.

Full year figures for 2019 show that Voi’s revenues accelerated by almost fifty-fold during its first full year of operation, reaching SEK 317m. At the same time, Voi’s employee numbers rose from 31 at the end of 2018 to 409 at the end of 2019. Full year results for 2019 for Voi Technology AB 2019 are filed today.

The rapid growth of the company has been supported by investments from committed shareholders, allowing Voi to launch successfully in all of Europe’s biggest e-scooter markets including Germany, France, Switzerland, Austria, Italy and Scandinavia. Following the last capital raise in November 2019, Voi focused firmly on strong unit economics and achieving operational excellence. 

At the centre of its strategy was the decision to invest in the fourth generation proprietary scooter, Voiager V3X, designed in-house. The roll-out of the new scooter, with a swappable battery, has been game changing for the company, driving a more than 50% reduction in lower daily charging, logistics and repair costs per scooter. At the same time, the company increased its investments to become the most efficient micro mobility operator in the world through data driven analytics and machine learning capabilities. Another initiative saw the company launch a resale programme for refurbished scooters, facilitating the efficient recycling of capital in line with its sustainability targets. To date over 10,000 scooters have been sold. 

Foray in UK market

Voi has also seen a paradigm shift in the operating environment. Following the Covid-19 lock-downs, the regulatory environment in many countries has improved significantly and decision makers are embracing new modes of transportation. Consumer behaviour is also changing, accelerating the use of multiple modes of transportation around cities. 

On the back of Voi’s strong financial performance and renewed appetite from policymakers for new forms of transport to relieve capacity constraints on public transport, Voi’s main shareholders are supporting the company to invest further in these new opportunities, including the opening up of the UK market, potentially Europe’s biggest yet.

€26.3M funding agreement

The company has signed a funding agreement with existing and new shareholders which will raise up to $ 30 million (€26.3 million). VNV Global Ltd. led the round accompanied by more than 20 existing shareholders. In addition, a select number of new shareholders were also invited to participate. 

The additional funds raised will be used to enable expansion into new markets, including the UK and to focus even further on efficiency enhancing initiatives. The company continues to target 2021 as its first full year of profitability. 

“Coronavirus reset our industry to our long-term benefit and we are equipped to capitalize on the strong traction we see post-Covid-19. The incredible performance of our new e-scooter V3X has exceeded our expectations and we are now reaping the benefits of the structural improvements in unit economics that we have been working towards. The new generation scooters will make it possible to break-even at lower prices and lower utilization levels, paving the ground for the widespread adoption of e-scooters in Europe’s cities, on which we are entirely focused,” says Mathias Hermansson, CFO and Deputy CEO of Voi Technology.

“The performance this year bodes well for our launch in the UK where the Government has fast-tracked the launch of e-scooters in cities across the country, as a way of allowing socially distant travel. We expect to be awarded licenses in the next few weeks bringing micro-mobility to UK towns and cities for the first time and we are now strongly capitalized for this undertaking. We have seen huge interest from UK authorities in how Voi can work with them to launch this new form of low-carbon transport that replaces car use in urban areas.” 

“It has been a tough first half to the year, but we are very happy to report the progress Voi has made so far after all the hard work put in by our colleagues to make Voi the most efficient fleet operator across Europe. Monthly profits is a huge milestone not only for us, but for the entire industry which has attracted much scepticism in the last year.” 

— Press release

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