Bristol-headquartered Huboo, a leading software-driven eCommerce fulfilment provider, has successfully closed a £29 million funding round, signaling a strategic move towards profitability.
The investment comes from existing supporters, including Ada Ventures and Maersk, with additional backing from financial giants HSBC and Blackrock. This infusion of capital follows the company’s seventh consecutive year of robust growth, bringing the total investment to an impressive £122 million.
The funds will play a crucial role in driving Huboo towards sustained profitability, market expansion, and long-term growth, cementing its position as a frontrunner in European eCommerce fulfilment. Notably, this milestone coincides with the company’s announcement of 100% growth over the past year, securing over £25 million in new business and onboarding 800 new clients. Among its prominent clientele are renowned brands such as AU Vodka, West Ham FC, and Bristol Sport.
In a strategic move to navigate challenging economic conditions impacting pan-European eCommerce, Huboo has streamlined costs and reduced overheads by approximately half over the past 12 months. The company’s European footprint, spanning the Netherlands, France, Spain, and Germany, has also expanded significantly in 2023, with the Dutch operation achieving a noteworthy £5 million ARR for the first time.
Huboo’s Vision for Revolutionizing eCommerce Fulfilment
CEO and co-founder Martin Bysh emphasized the company’s commitment to transforming eCommerce fulfilment, stating, “Despite a challenging fundraising environment, the latest investment round is a testament to the confidence our investors have in our long-term vision and strategy.” Bysh highlighted the team’s dedication to maintaining growth and enhancing customer experience through innovative services, such as the introduction of automation for Enterprise clients.
Established in 2017 by Bysh and CIO Paul Dodd, Huboo has evolved from humble beginnings with just two storage lockers in Bath to operating 10 warehouses across Europe, boasting a workforce exceeding 750 employees. Unlike many businesses struggling to find efficient and cost-effective fulfilment solutions, Huboo leverages software to drive smarter, more productive, and human-centric warehouses.
Revolutionary Fulfilment Solutions with State-of-the-Art Technology
Huboo’s end-to-end fulfilment proposition includes transaction management, stock control, order tracking, billing, and integration with popular sales channels and marketplaces such as TikTok, Amazon, eBay, and Shopify. The company’s unique approach involves housing teams in self-contained ‘micro hubs,’ allowing for quick and intelligent operations within a few hundred square feet. This not only enhances efficiency but also reduces annual warehouse staff turnover to an impressive 2.5%, a stark contrast to industry statistics.
Matt Penneycard, partner at Ada Ventures, commended Huboo’s potential, stating, “Never in my career in VC have I seen an investment opportunity with the scale prospects of Huboo.” Penneycard highlighted the company’s blend of state-of-the-art technology and operational expertise in a sector yet to be fully digitized, emphasizing the limitless upside potential.
As Huboo continues its journey towards reshaping the landscape of eCommerce fulfilment, this latest funding round positions the company as a formidable force in the industry, driving innovation, efficiency, and sustained growth.