Tech-driven logistics provider ShipMonk is commanding PE interest in a newly launched sale process, five sources familiar with the situation told PE Hub.
The process is in the early stages and the company has yet to receive bids, the sources said. Private equity firms are expected to participate, having already expressed interest in the business, they said.
Goldman Sachs is advising ShipMonk on the process, they said.
ShipMonk, based in Deerfield Beach, Florida, provides multi-channel order fulfilment services and inventory management software to small and midsized (SMB) e-commerce companies.
The company, founded by CEO Jan Bednar, has three warehouse locations in Fort Lauderdale, Florida, San Bernardino, California, and Pittston, Pennsylvania.
In October 2018, the company raised $10 million in a Series A funding round led by SJF Ventures, with participation from Grotech Ventures, Supply Chain Ventures, and a strategic group of individual angel investors.
ShipMonk currently generates around $100 million in revenue and around $25 million in adjusted EBITDA, the sources said.
According to the company’s press kit, ShipMonk grew its revenue from $130,000 in 2014 to $67 million in 2019.
The logistics space is considered a hot area of investment, with ShipMonk poised to field investor attention in light of Shopify’s success, one of the sources told PE Hub. ShipMonk provides warehousing for non-Amazon brands and helps to bridge the gap for mom-and-pop shops that can’t make the last-mile delivery on their own, the person said.
At the same time, ShipMonk is not a pure play enterprise software company and its business model includes costly fulfillment services, another source noted. A critical part of ShipMonk’s supply chain is not software-based, so whoever ends up buying the company needs to get comfortable with that element, the person said.
A logical buyer for the company would be a growth equity firm that is comfortable paying for growth, as well as one that understands services businesses, the third source said.
Goldman Sachs declined to comment for the story. ShipMonk did not return PE Hub’s request for comment.
Action Item: See ShipMonk’s website here.