Supply-chain startup Shippo is hungry for M&A

Shippo, a software provider of shipping-related services to e-commerce companies, is eyeing M&A as it doubles down on its core business, CEO Laura Behrens Wu told Axios on the sides of Shoptalk.

Why it matters: Startups that are in a good financial position are seizing the opportunity in this market to find skilled talent and scale through acquisition.

Driving the news: "We think our space is ripe for consolidation," Behrens Wu said.

• Shippo will look at companies that are smaller but play in the same space, augmenting the company’s core business, which is generating shipping labels and bringing on more customers.
• Target companies could be those that singularly focus on returns or tracking, or have good features that are adjacent or complementary to the business, she says.
• Shippo will be looking internationally as well.

What they’re saying: “Our business is about scale,” Behrens Wu said.

• The more volume you bring to the table, the more leverage you have and the greater your ability is to attract bigger and more interesting partners, she said.

Catch up fast: The company got funded in the middle of the pandemic so it's in a good spot to do M&A because of current market conditions, Behrens Wu said.

• The company raised $50 million in late-stage capital in June 2021 led by Bessemer Venture Partners, putting the company's valuation at around $1 billion.
• This came three months after it raised $45 million from existing investors, including D1 Capital.
• Shippo has raised a total of about $154 million to date, according to PitchBook.

What’s next: The company will be selective as it scales, she adds, and it will plan to do one acquisition at a time.