Hubo raises £ 60million to become Europe’s leading e-commerce service provider
- The latest round of funding was led by Mubadala Capital, whose investment in Hubo strengthens its growing B2B portfolio in Europe.
- Funding comes from Hubo’s exponential growth driven by a dramatic shift in e-commerce penetration in the wake of the COVID-19 pandemic.
Huboo, the software-driven full-stack e-commerce order fulfillment platform, today announced the closing of its £ 60million Series B funding led by Mubadala Capital. This new investment is in addition to the £ 14million Series A funding raised last year and will help fuel Hubo’s expansion in mainland Europe.
Founded in 2017 by Martin Bysh and Paul Dodd, the company has expanded its operations from a warehouse in Bristol to operating four distribution centers across the UK. It recently opened a site in the Netherlands and plans to expand its operations into several other European markets over the next 12 months.
To date, Hubo has acquired over 1,000 customers, ranging from small direct-to-consumer (D2C) merchants to major e-commerce brands, solving critical challenges in their order fulfillment, warehousing and fulfillment process. inventory management, order logistics and shipping.
Currently, many e-commerce companies manage their entire order fulfillment process in-house, largely due to the prohibitive cost of outsourcing the process to third parties. Following an increase in e-commerce sales following the COVID-19 pandemic, small and medium-sized businesses (SMEs) are increasingly looking for affordable solutions that can support their fulfillment process and enable them to ship an increasing number of goods in a fast and economical manner.
Hubo’s end-to-end order fulfillment service offers merchants a complete solution that includes an intuitive and easy-to-use merchant platform integrating multiple sales channels and online marketplaces, warehouse management software developed in internal and a network of warehouses divided into high performance micro-hubs.
The company’s merchant platform uses APIs to integrate with popular sales channels and online marketplaces such as Amazon, eBay, and Shopify, allowing D2C brands to view and track orders and manage their inventory on a single dashboard in real time. Hubo has also developed proprietary software to manage warehouse operations and continuously optimize the disposition of stocks.
Leveraging its technology stack, the company operates a network of physical warehouses that are divided into modular micro-hubs of a few hundred square feet each. These small hubs allow the Hubo team to pick and pack high variability inventory smarter and more efficiently, while providing exceptional customer service. Hubo’s warehousing model is not only scalable but also lightweight, meaning that a new site can be launched in a matter of weeks.
Hubo’s long-term mission is to become the operating system for e-commerce businesses in Europe – a single platform for customers to manage inventory and fulfillment, manage their existing distribution channels, deploy new sales channels with the click of a button, create their own storefront and access a range of useful e-commerce related services through the Hubo merchant app store.
The increase comes after an incredible 24-month growth that saw the company’s revenue increase 10-fold in 2020. The round was led by Mubadala Capital and joined by existing investors including Stride, Ada Ventures, Hearst Ventures , Episode 1 and Maersk Growth, and takes Hubo’s total funding has reached almost £ 80million since April 2019.
Martin Bysh, co-founder and CEO of Hubo, said: “Dozens of new and existing retail businesses are now seeing their future in e-commerce, but while anyone can build an online storefront and start selling in a matter of hours, the infrastructure powering e-commerce is alarmingly outdated, inefficient, inflexible and costly.
“This is the problem we set out to solve with our hub model, which brings flexibility and affordability to the incredibly complex fulfillment part so that online retailers of all sizes – from part-time workers to D2C leaders fast growing – can benefit.
“We are delighted to have Mubadala on board and look forward to developing our plans. This increase allows us to deploy our proposition on a larger international scale, as well as to broaden our service offering, to continue our software development and to invest more in our growing team. By supporting the complexity of execution, our goal is to enable transparent and borderless commerce for e-commerce businesses of all sizes.
Fatou Bintou Sagnang, partner at Mubadala Capital Ventures, said: “Hubo’s product solves one of the most critical problems for e-commerce businesses – although order fulfillment is a core function for these businesses, it is not part of their core competence. By combining logistics with a user-friendly software platform, Hubo delivers a superior execution experience and enables businesses of all sizes to continue to focus on their core businesses such as product development, while managing the growing demand for their clients.
Damien Lane, co-founder and partner of Episode 1, said: “Episode 1 is thrilled to continue supporting Martin and Paul. After leading their first round of funding in April 2019, we were blown away by the growth and speed of execution and look forward to working with new investors to support the team in building a class-defining business. .
Matt Penneycard, Founding Partner at Ada Ventures, said: “Huboo is a shining light of British technology, and we are especially delighted that a Bristol-based company is succeeding in this way! Martin and Paul’s incredible vision is becoming a global reality at supersonic speed. Their innovative approach to fulfillment logistics is powered by their proprietary technology, which has led to happy employees and customers – no small feat! Ada Ventures are so proud of them and their team and we are delighted that this is a company that we have been supporting from the start, until this growth cycle where we have also invested a large SPV.
Fred Destin, Founder of Stride.VC, said: “Huboo does what seems impossible – delivering low-cost, high-precision e-commerce processing to businesses of all sizes and levels of complexity. Hubo innovates both in the way he views logistics, as a set of interconnected lego blocks connected by software, and in the way he views people, as a team of self-taught, self-taught people obsessed with customer success. It is a start-up that deserves to be supported and that is why we are doubling down.