Neopost buys majority stake in fulfillment software firm Temando
Mail solutions giant Neopost has invested $50m to take a majority stake in the fulfillment software provider Temando. Neopost, the second largest mail services and technology firm after Pitney Bowes, said the strategic investment came as part of the continuing expansion of its shipping solutions, and in a bid to expand its presence within the e-commerce sector.
Temando said it will use the Series B investment round for product development, and to continue its growth within the United States and the UK, where it launched in 2013.
The company will also be able to leverage Neopost’s global reach, it said.
Temando provides an “intelligent fulfillment” software platform that connects online retail websites to shipping and logistics systems and carriers, launching in its native Australia in 2009 with the aim of improving the consumer delivery experience in a highly fragmented logistics industry.
Working with partners including IBM and Magento, the technology can help bring together inventory management, courier selection from multiple carriers and shipping cost estimation. It promises to bring down costs for e-retailers while providing more courier and delivery choices.
The company already works with more than 50,000 retailers, including major brands like ASOS, Krispy Crème, Moet Hennessy, and Toys R Us.
The firm claims to have processed 2bn transactions in 2014, when its revenue grew 711% year-on-year. It has offices in Brisbane and Sydney, Australia, as well as in San Francisco, London and Manila.
“Unique opportunity”
Denis Thiery, chairman and CEO of Paris-based Neopost, said: “Our investment in Temando further expands our portfolio of fast-growing activities in communication and shipping solutions.
“It provides us with technologies that complement our existing offering in shipping management, especially eCommerce, compliance control and full landed costs. This transaction is a unique opportunity to extend our footprint among online retailers and fulfillment service providers.”
Carl Hartmann, the co-founder and CEO at Temando, said his firm was “thrilled” to gain the backing of a major player in the industry.
“Neopost’s strategic stake in Temando will help us continue improving the most complete and advanced fulfillment platform available today. Our technologies will enable retailers to deliver flexible, world-class experiences for their customers that save time and money,” Hartmann said.
As the Neopost announcement was made today, Temando said it has appointed Bob Schwartz, the former president of e-commerce software firm Magento, to its board of directors effective immediately.
Entrepreneur Schwartz, who led Magento to a 30% market share before its sale to eBay, has already been advising Temando since last year.
“Temando has revolutionized the 21st century shipping experience for retailers, enabling them for the first time to truly optimise across the omnichannel,” said Schwartz.
“The Temando platform provides retailers, agencies and technology companies with the intelligence to have a higher level of control and cost efficiency over the entire fulfillment process and better satisfaction of delivery and returns for consumers.”
