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Logisticslogisticse-commercefulfillment

SHIPBOB

Netfigo Verdict
on ShipBob

ShipBob exists because every small e-commerce brand wants Amazon-speed shipping but cannot afford to build their own warehouse network. They built a fulfillment platform that lets a Shopify store with 50 orders a day ship like a Fortune 500 company. The unsexy backbone of the direct-to-consumer revolution.

Founded

2014

HQ

Chicago, Illinois

Total Raised

$330 Million+

Founder

Dhruv Saxena and Divey Gulati

Status

Private

THE ORIGIN STORY

Dhruv Saxena and Divey Gulati were running their own small e-commerce business while at college and experienced firsthand how painful shipping and fulfillment was for small brands. Packing orders in their apartment, running to the post office, losing track of inventory — the whole nightmare.

They realized that the gap between what Amazon could do and what a small brand could do was enormous. ShipBob was born to close that gap.

Y Combinator backed them in 2014, and they have been building warehouse infrastructure ever since.

WHAT THEY ACTUALLY DO

ShipBob is a third-party logistics (3PL) company that handles warehousing, picking, packing, and shipping for e-commerce businesses. Brands send their inventory to ShipBob's fulfillment centers across the US, Canada, Europe, and Australia.

When a customer places an order, ShipBob picks, packs, and ships it automatically. Revenue comes from storage fees, fulfillment fees per order, and shipping charges.

They integrate directly with Shopify, WooCommerce, Amazon, and other platforms.

THE PRODUCTS

ShipBob Fulfillment Network (40+ warehouses), ShipBob WMS (warehouse management), Merchant Plus (for brands with own warehouses), Analytics Dashboard, Returns management

HOW THEY GREW

Expand the fulfillment center network to get closer to end consumers, reducing delivery times and shipping costs. Move upmarket to serve larger brands, not just small Shopify stores.

Build more software tools — inventory management, analytics, returns processing — to make switching costs higher. International expansion, especially in Europe.

THE HARD PART

Fulfillment is a brutally low-margin, operationally complex business. Every new warehouse costs millions to set up and takes months to optimize.

Competing with Amazon's FBA (Fulfillment by Amazon) is a constant struggle — Amazon can subsidize fulfillment costs that ShipBob cannot. Scaling internationally while maintaining delivery speed and accuracy is extremely difficult.

MONEY TRAIL

Seed

2015 · Led by

$3M raised

Series B

2019 · Led by

$40M raised

Series D

2021 · Led by

$200M raised

Series E

2022 · Led by

$68M raised

WHO BACKED THEM

SoftBank Vision Fund 2, Bain Capital Ventures, Hyde Park Venture Partners, Y Combinator, Menlo Ventures

Head-to-Head

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