Hubo announced the closing of a £ 60million Series B financing led by Mubadala Capital. This new Hubo investment is in addition to the £ 14million Series A funding raised last year and will help fuel the fulfillment service provider’s expansion in continental 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, in-house developed warehouse management software 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, enabling 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 manages 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, which means 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 £ 60million investment in Hubo 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 brings the total Hubo funding raised to almost £ 80million since April 2019.
“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 within hours, the infrastructure powering e-commerce is alarmingly outdated, inefficient, inflexible and costly.
That’s 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 to rapid growth – can benefit from it.
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.
– Martin Bysh, co-founder and CEO, Hubo