Flexport Raises $260 Million Funding from Shopify

By Liz Young

Flexport, a leading freight forwarder, has announced that it recently secured $260 million in funding through an uncapped convertible note from Canadian e-commerce service provider, Shopify.

Flexport's CEO, Ryan Petersen, shared the news on Friday, highlighting the company's commitment to further growth and innovation. However, a spokesperson for Flexport declined to comment on the company's current cash reserves or how they plan to utilize the funding.

This latest round of financing comes after Flexport's impressive achievements in February 2022 when they reached a valuation of $8 billion with a fundraising round that generated $935 million.

In recent months, Petersen has implemented significant changes within the company in an effort to restore profitability. The effects of weak shipping demand led to a decline in Flexport's revenue throughout 2023 due to plummeting shipping prices.

Moreover, this funding round strengthens the already established relationship between Flexport and Shopify. Back in May, Flexport acquired Shopify's logistics operation, further solidifying the bond between the two companies. Presently, Shopify holds a 17% stake in Flexport and has a seat on the board.