Shippit acquires Premonition for $20.5 million

Sydney-based logistics software company Shippit has acquired like-minded last-mile tech company Premonition for a cool $20.5 million, as the players cash in on the e-commerce boom in the pandemic era.

Premonition, who counts Couriers Please, Fastway Blu and DeliverE and corporate fleets for Reece and News Corp among its clientele, now powers more than 40 million deliveries every day from more than 3000 drivers.

It was founded in 2016 by Brad Lorge, Matthew Moss and Kenneth Wong as a B2B route optimisation and logistics company with a heart of gold — the initial business blueprint was to help the food bank sector reduce wastage, but it quickly expanded into wider logistics.

That was just two years after Shippit hit the market in 2014, the brainchild of William On and Rob Hango-Zada which used algorithmic intelligence to match the best carrier for the job.

Fast forward to 2022 and Shippit is backed by Germany’s Global Founders Capital (behind start-up factory Rocket Internet), EVP (previously called Equity Venture Partners), Tidal Ventures, and Aura Ventures.

Premonition marks the first major acquisition for Shippit, who recently announced their foray into same-hour fashion delivery in partnership with Uber.

On says he’s thrilled about the acquisition after two years of accelerated growth for last-mile logistics providers — a spike in demand during March-July 2020 meant Shippit revenues tripled during the 2019/20 financial year, pushing the startup to profitability for the first time.

No momentum has been lost since, after the company raised $30 million in Series B funding in 2020, while the Series 3 funding raise has been underway since late last year.

Plus, On says, both customer bases will benefit from the move — On forecasts efficiencies will improve by up to a third after the acquisition is complete, which will see 21 Premonition staff move across to Shippit’s headquarters.

“With greater parcel visibility and multi-carrier connectivity, we can gain clarity on where to increase efficiencies so our retailers and carriers can reduce waste, overall carbon emissions, and costs,” he says.

Premonition co-CEO Brad Lorge says the surge in e-commerce demand amid the pandemic has provided the company with an opportunity to completely rethink the logistics model.

And who better to join forces with than Shippit, Lorge asks?

“Shippit and Premonition are uniquely placed to lead the e-commerce delivery revolution for carriers and retailers alike,” he says.

“Our new home at Shippit means we can continue our mission of making carriers’ lives easier and delivering meaningful innovation.”