SOURCE: Shipt

Shipt

June 06, 2017 07:00 ET

Shipt Raises $40M in Series B Funding to Continue Aggressive National Expansion

Grocery delivery service will use funding to help reach goal of 100 markets within one year

SAN FRANCISCO, CA and BIRMINGHAM, AL--(Marketwired - Jun 6, 2017) - Shipt, the fastest growing online grocery marketplace, today announced that it has raised a $40M Series B financing led by Greycroft Partners, with participation from e.ventures and Harbert Venture Partners. The company aims to provide service in 100 metro areas within the next year, giving more people with access to grocery delivery. The round follows a $20M Series A financing closed less than one year ago.

Shipt's unique approach to grocery e-commerce has propelled it to 47 metro areas and over 20 million households in under two years. With a membership model and focus on planned deliveries rather than on-demand, Shipt's average basket size of $110 is over three times the in-store average. Shipt is currently delivering millions of orders per year. Shipt partners with leading national and regional retailers that include H-E-B, Meijer, Costco, Whole Foods and ABC Fine Wine & Spirits to offer a variety of members' favorite brands and products. With this new round of funding, Shipt plans to maintain a rapid pace of new market expansion, forge new partnerships with retailers and brands, and preserve its commitment to member satisfaction.

"At Greycroft, we invest in talented entrepreneurial teams who are attacking big problems," said Ian Sigalow, Co-Founder and Partner at Greycroft. "Shipt set out to transform the way people think about grocery shopping, and in the process they turned a service that was previously available to only a small subset of the population into an affordable luxury for millions of households. The company has shown an impressive ability to scale as it expands to new markets, and most importantly, it does a phenomenal job of retaining and delighting customers, which is the key factor in every young business."

Shipt launched in 2014 after CEO and founder Bill Smith drew inspiration from a visit to the grocery store with his children. He was driven to create an intuitive, more efficient way to accomplish the weekly shopping trips with which many families struggle. Founded in Smith's hometown of Birmingham, Alabama, Shipt became an instant hit among busy families who enjoyed the convenience of trustworthy grocery delivery. The company now has offices in Birmingham and San Francisco.

"Grocery shopping is one of those activities that everyone has to do, but often feels like a chore. Shipt's goal is to give people back the hours they would normally spend at the grocery store so that they can focus on the things that matter most to them," said Smith. "Not only is our mission to simplify life for our members, we also aim to create flexible, enjoyable opportunities for our team of thousands of Shoppers. We know that our team's passion and dedication to providing delightful service is a major key to our success."

Mathias Schilling, Managing Partner at e.ventures, said, "Shipt has quickly become a staple in many homes across the country. The company's rapid growth, winning business model and team, and commitment to delivering a superior customer experience have positioned it as a leader in the grocery delivery market. We look forward to ongoing collaboration with Shipt as we work towards continued scale and success."

Through the Shipt app, members are able to browse a selection of groceries, household goods and alcoholic beverages offered by retailers that partner with Shipt. The Shipt app allows members to note any preferences, choose a one-hour delivery window and pay for their order, all through one seamless shopping experience.

Shipt then connects members with a community of Shoppers who hand pick their items and deliver them as soon as one hour after the order is placed. Shipt memberships are available for an annual fee of $99 and members have access to unlimited free deliveries. To sign up for Shipt and learn more about the service, visit Shipt.com.

Shipt previously raised a $20M Series A round led by Greycroft Partners, e.ventures and Harbert Growth Partners. Prior to that, the company raised a $3M Seed round.

About Shipt
Shipt, the nation's fastest growing online grocery marketplace, partners with leading retailers to deliver groceries via a community of shoppers and a convenient app. Since its founding in 2014, Shipt has been rapidly expanding and now offers quality, personalized grocery delivery to over 20 million households in nearly 50 markets across the country. Shipt offers unlimited grocery deliveries to members for $99 per year. The company currently has offices in Birmingham, AL and San Francisco, CA. For more information, visit Shipt.com.

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