Last mile delivery startup HUBBED has landed $12 million from the Australian Business Growth Fund (ABGF) in a deal that sees the big banks and government backed venture capital fund take a 30% stake in the logistics business.
Amid an explosion in parcel delivery in recent years, HUBBED offers designated collection points across 2,150 convenient locations nationally including 7-Eleven stores, BP service stations, National Storage and independent retailers. The capital injection will see collection outlets rise to more than 3,000 nationally.
The company has built proprietary technology that seamlessly integrates into retailers, online marketplaces, and carriers’ systems to alleviate B2C last mile delivery pain points and make shopping/eCommerce deliveries easier, faster, and cheaper through its PUDO (Pick-Up Drop-Off) network.
Delivery companies such as Couriers Please, DHL, eBay, FedEx, Sendle, TOLL, TNT, and UPS are using HUBBED as a solution for last mile delivery.
HUBBED founder and CEO David McLean is an early pioneer of PUDO/collection networks and said the ABGF investment would see them scale significantly.
“Partnering with ABGF has been a completely different experience to other financial organisations I’ve encountered,” he said.
“From the first meeting, I knew ABGF was truly invested in understanding and building our business through a collaborative, transparent partnership. They weren’t just looking at what the deal would mean for them in the short-term.
“ABGF’s people, values and culture sealed the deal for me. I know they are as invested in our long-term success as we are. And their expertise and network will elevate our business strategy to the next level.”
ABGF provides growth capital to Australian small-medium enterprises (SME), filling the gap between late-stage venture capital and large buyout funds. Announced in 2019 by the former Morrison government, kicked off in 2020 with $540 million, including $100 million the government, matched by each of the Big Four banks, with HSBC and Macquarie also contributing $20 million each. The goal is to build the profit-for-purpose fund to $1 billion.
ABGF co-head of investment Ghazaleh Lyari said they look for opportunities that can demonstrate a proven business model and need a capital boost to accelerate organisational success.
“HUBBED is a great Australian business that has come up with an innovative solution to address a gap in the eCommerce market. We’re excited to be on this journey with them,” she said.