Forwarder Flexport raises $260m through Shopify
22 / 01 / 2024
Source: Flexport
Freight forwarder Flexport has raised $260m in funding from e-commerce platform Shopify.
The company, which last year had to make job cuts as it looked to reduce costs, raised the money through an uncapped convertible note.
Writing on X, Flexport chief executive Ryan Petersen said the investment would further strengthen the firm’s cash position and “send a strong message to customers that Flexport is building a long-term sustainable business that will continue to deliver best-in-class technology and services for global businesses”.
“Our fortress balance sheet continues to be one of our most strategic assets as we navigate the uncertain waters of global trade in the 21st century in pursuit of this vision,” Petersen said.
He added that the company had “made massive progress” toward returning to profitability.
In November last year, Flexport announced it would shrink its global workforce by “approximately 20%” as part of its plans to cut costs as the company looked to return to profitability.
At the time, Petersen said Flexport had $1bn in net cash.
It was the second round of job cuts at Flexport in 2023. In January it announced it would cut its workforce by 20% as it was overstaffed.
Meanwhile, Shopify already has shares in the forwarder. Last year, Flexport took over Shopify Logistics, including e-commerce fulfilment company Deliverr, as the company looked to extend the reach of its logistics offering.
The deal gave Shopify a 13% stake in Flexport. Last year, Shopify invested further in Flexport as part of a funding round that raised a total of $935m.
