Shippit has announced that it will pay $18 million to buy the logistics SaaS platform Luwjistik, based in Singapore.
Founded by longtime friends William On and Rob Hango-Zada in 2014, with a mission to improve shipping for small businesses, as they have personally experienced the drawbacks of online shopping.
After two years of operations in the region for the Sydney-based company, the Australian logistics tech company co-founder and co-CEO William On has relocated to Singapore to lead the new expansion and manage the existing 50-person Luwjistik team.
This comes after the company raised $65 million in Series B2 funding, which helped operations in Southeast Asia, and almost seven months after it bought the last mile logistics tech platform Premonition.
Shippit’s inclusion of Luwjistik’s co-founders, who bring extensive industry experience and connections to the table, is expected to revolutionize the company’s approach. The acquisition of Luwjistik will also enable the company to provide tailored solutions for the Southeast Asian market. Therefore, Shippit can be the best option for many who manage their warehouse or search for a logistics partner.
The startup works with carriers such as Ninja Van, J&T Express, and JNE Express, as well as logistics companies such as Maersk, POS Malaysia, Lion Parcel, and Summer International.
Within a month of launching Luwjistik, the duo raised US$1.1 million (AUD$1.7 million) in a seed round led by East Ventures, including MDI-Arise Finches and Global Founders Capital.
William anticipated a significant increase in e-commerce in Southeastern Asia, which will continue if Shippit and Luwjistik join forces. Currently, they can provide a one-stop platform for enterprises and the expanding SME segment, particularly in Indonesia, Malaysia, the Philippines, and Thailand.
More than 40 million deliveries were booked via the Shippit platform in the fiscal year 2022. Since its inception in 2014, Sydney-based Shippit has fulfilled e-commerce orders worth $5.5 billion for more than 3,500 retailers.
“I strongly believe that by combining our strengths, we can continuously innovate and offer the most impactful, reliable, and relevant solutions to a fast-changing, dynamic market.” – William shared with Business News Australia.