Logistics solutions market takes off as startup byrd lands €16m investment
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Online logistics platform byrd has raised €16m in a Series B funding round, amid the pandemic that has slipped up supply chains and stoked an online shopping frenzy.
The rally was led by Santander-backed Mouro Capital, which has invested in companies sold on to PayPal and American Express.
This latest round follows byrd’s €5m Series A in July last year and lifts the total backing to €26m.
Founded in Vienna in 2016, byrd offers online shops the ability to outsource and control their logistics chains digitally.
“The pandemic has brought the need for flexible, digital e-commerce fulfilment solutions into sharp relief,” general partner at Mouro Capital, Manuel Silva Martínez, said.
The Europe based platform plans to use the latest funds to bolster its supply network into Italy, Spain, Poland and the Nordics.
The startup doubled its workforce with its Series A funding last year to 100 – when most firms were shedding staff due to pandemic uncertainty.
Co-founder and chief commercial officer, Petra Dobrocka, told City A.M.: “We are planning to grow further to 200 by the end of this year, mainly hiring for our engineering team, but also more widely across all other departments.”
Double-edged sword
Beyond meddling with workforces, the pandemic has cut holes in supply chains as companies furloughed staff and shortages became apparent in the e-commerce sphere.
The UK alone racked up a digital shopping bill of more than £110bn in 2020, for the first time since records began, according to Ofcom data.
Meanwhile, real estate adviser CBRE showed that take-up of UK logistics space soared to record-breaking levels last year, as retailers scrambled to keep up with the demand for online shopping.
Dobrocka explained that the pandemic has been a double-edged sword for the company, as it welcomed the increase in demand but felt the impacts of restrictions that grounded flights across the globe.
“On the positive side, we felt a strong increase in inbound requests, both from newly founded companies and from established brands who were rethinking their e-commerce fulfilment setup.
“At the same time, we were also facing some challenges just like many other companies operating in logistics. Our day-to-day processes had to be very flexible, for example by finding new shipping options for overseas shipments that were blocked by limited aeroplane capacities.”
With heightened demand, there appears to be an increased appetite for logistics solutions businesses like byrd.
Just last week Dubai Port owner and logistics company DP World agreed to buy US supply chain solution company Syncreon for an eyewatering $1.2bn.
The startup has seen its revenue soar 300 per cent year-on-year and now works with brands like Durex and Scholl.
“We’ve seen an increase in interest from well-known brands like Durex or Scholl throughout the last 12 to 18 months, likely powered by the pandemic and the strengthening of the direct-to-consumer trend,” the co-founder said.
It already has a network of 15 warehouses across Europe but plans to widen this network with its latest bout of funding and “turbo charge” byrd’s growth, she added.