Total amount raised
$65.2 Million
Latest funding date
06/01/2017
Location
Shipt has successfully raised funding over three rounds, with the latest being a Series B round led by Greycroft. The company has attracted investment from notable firms such as Harbert Venture Partners and Headline.
Shipt's acquisition by Target marked a significant milestone in its financial journey. Keep reading to explore the intricacies of Shipt's fundraising journey and the investors backing this innovative platform.
What Is Shipt?
Shipt is a grocery delivery service that allows members to order groceries and alcohol from local stores for delivery to their door. The company operates in the delivery, e-commerce, grocery, and same-day delivery industries.
Founded in Birmingham, Alabama, Shipt has grown significantly and now employs between 1001-5000 people. The company was acquired by Target and continues to operate as a private entity.
Shipt offers a personalized shopping experience with real-time updates and the convenience of same-day delivery from both local and national stores. Membership plans include a 14-day free trial, making it accessible for new users to try the service.
How Much Funding Has Shipt Raised?
- Seed Round
- Amount Raised: USD 5,200,000
- Date: February 2016
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart operations and develop the initial platform for grocery delivery services.
- Series A
- Amount Raised: USD 20,000,000
- Date: July 2016
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand service areas and enhance technology to improve delivery logistics.
- Series B
- Amount Raised: USD 40,000,000
- Date: June 2017
- Lead Investors: Greycroft, Harbert Venture Partners, Headline
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Shipt's service areas from 47 metro areas to approximately 100 cities and to better compete with other grocery delivery services.
Total amount raised: USD 65,200,000. Current valuation: Not publicly disclosed.
Key Investors
- Greycroft Partners
- Details: Greycroft Partners is a venture capital firm that invests in early and growth-stage companies. They focus on sectors such as internet and mobile technology, software, and digital media.
- Investment Focus Areas: Internet and mobile technology, software, digital media.
- Notable Investments: Venmo, The RealReal, Scopely.
- e.ventures
- Details: e.ventures is a global venture capital firm that focuses on early-stage investments in consumer internet, media, and mobile companies. They have a strong presence in both the U.S. and Europe.
- Investment Focus Areas: Consumer internet, media, mobile companies.
- Notable Investments: Angie’s List, Groupon, Farfetch.
- Harbert Venture Partners
- Details: Harbert Venture Partners is a venture capital firm that invests in early-stage technology companies. They focus on sectors such as healthcare, information technology, and energy.
- Investment Focus Areas: Healthcare, information technology, energy sectors.
- Notable Investments: ControlScan, Invincea, Wellcentive.
What's Next for Shipt?
Shipt is poised for significant growth as it plans to expand its services from 47 metro areas to around 100 cities within the next year. This expansion presents a substantial opportunity to serve millions more families, particularly in suburban areas outside major city centers. The company's partnerships with major grocery chains and its efficient logistics model position it well to capture a larger market share in the competitive grocery delivery industry.
Future fundraising opportunities are likely as Shipt continues to grow. The confidence shown by existing investors, such as Greycroft Partners and Harbert Venture Partners, suggests that additional funding rounds could be on the horizon. This financial backing will be crucial for Shipt to scale its operations and enhance its service offerings.
However, Shipt will face challenges, including intense competition from well-funded rivals like Instacart and AmazonFresh. Managing logistics and maintaining high service quality during rapid expansion will also be critical. Despite these hurdles, Shipt's strategic focus on suburban markets and its robust membership model provide a strong foundation for future success.
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