Flexport raised $260M from Shopify, one of its biggest shareholders; Shopify sold its money-losing logistics unit to Flexport in exchange for equity in May 2023
Report FreightWaves : Flexport raises $260M from Shopify Threads: Ran Reichman / @ranreichman : I don't understand this on two accounts: 1. Flexport CEO said they have a fortress balance sheet quite recently. 2. Why does Shopify need this? X: Buck / @bucknsf : Tobi going to own this shit in 18 months. Congrats on the common Trace Cohen / @trace_cohen : Shopify already owns 13%+ of Flexport when they sold their logistics business to them June 2023 Uncapped is smart - support partner - pricing would be a down round - more priority support - they see more upside potential - stock up 100% in last year Rohan Goswami / @rogoswami : Months ago @annierpalmer and I reported that Flexport had secured the “framework” for $260m from Shopify as part of the Deliverr deal, framed as a stopgap on the way to an IPO Today @theo_wayt with a nice scoop: Flexport has activated that facility. https://www.theinformation.com/ ... [image] Theo Wayt / @theo_wayt : Scoop: Flexport is raising $260m in convertible debt from Shopify, giving the logistics startup breathing room after it burned through cash last year. Shopify also gave Flexport a previosuly unreported $40m cash infusion last summer. @theinformation https://www.theinformation.com/ ... Siqi Chen / @blader : a $230M uncapped note in the year of our lord 2024 we are so back Alexandra Clark / @clark_al : I mean, what better way to show confidence in a partner's ability to deliver for our merchants than with $$$$? 💪@typesfast https://www.theinformation.com/ ... Ryan Petersen / @typesfast : Flexport raised $260M on an uncapped convertible note from Shopify. Thank you @tobi and your entire team for this tremendous vote of confidence in our business and partnership. Anand Sanwal / @asanwal : Flexport and Shopify's relationship is complicated Here's a quick summary Feb '22 - Shopify Ventures invests in Flexport's Series E-2 round which valued the company at $8B May '23 - Shopify divests Deliverr and its Logistics & Fulfillment business to Flexport for an estimated... [image] Ryan Petersen / @typesfast : @lessin @tobi Tell your friends at the Information it's not a sign of a “struggling” company... Ben Fisher / @benf92 : I think the best take I saw is that SHOP needs the logistics partner, and funding these guys as a minority keeps the logistics off their B/S, so they seem like a software company who has minority investments instead of an e-commerce company who has capex needs. @lessin : @typesfast @tobi Uncapped note!? what is this 2021!? u kids cray Ryan Petersen / @typesfast : Since I came back to the role of CEO, our team has made massive progress toward returning Flexport to profitability. Ryan Petersen / @typesfast : Further strengthening our cash position with this investment should send a strong message to customers that Flexport is building a long-term sustainable business that will continue to deliver best-in-class technology and services for global businesses. @lessin : @typesfast @tobi k / but my question is what dirt you got on tobi ;) must be juicy. Tobi Lutke / @tobi : @lessin @typesfast Just good old fashioned merit Chris Power / @2112power : “Struggling company” Total BS. Massive partner throws in a quarter of a B uncapped. Flexport team are total Gs. LFG