Australian logistics software startup Temando, which is part-owned by James Packer’s private investment company Ellerston Capital, just raised $50 million in a deal that gives control of the company to European mail and digital print company Neopost.
Neopost announced it had taken a majority stake in Temando, an Australian technology company founded by CEO Carl Hartmann.
Hartmann told Business Insider the latest series B round was the result of much discussion with Neopost before it decided to take a “strategic stake” in the company.
Hartmann said: “Beside from, obviously, the dollars, we saw a lot of synergies…It’s a way to start the relationship.”
The companies are also considering an agreement where Neopost would progressively acquire the remaining shares of Temando.
Hartmann would not confirm the valuation of the company or detail how big the stake was, but said: “We are thrilled to have the backing of such a major player in our industry.”
Temando will use the funds for product development in the Asia Pacific region and use Neopost’s network to expand into the United States and United Kingdom.
In a statement, Neopost said it expected a return on capital employed to exceed 15% within 5 years. Temando will be fully consolidated in Neopost’s financial statements from March 2015.
After being in development for two years, Temando launched in 2011 with $1 million in seed funding. In 2012 the company raised a $5 million series A round from Ellerston. In the three years since it has been growing its user base and clocked more than two billion transactions on its system.
With much attention paid to the online shopping experience, from the front end of an ecommerce shop, to a seamless payments process, Temando sees order fulfillment as the last major challenge which needs to be overcome in online retailing.
Speeding up the shipping processes and making them cost-effective are two consumer demands it hopes to ride.
“As an Australian technology company we are proud of our heritage and wouldn’t be here today without the support of our ecosystem – retailers, agencies, carriers and technology partners who have believed in our vision from the start and continue to inspire our product development into the future,” Hartmann said.
Temando partners with eBay’s Magento and IBM to deliver behind-the-scenes improvements to eCommerce platforms, warehouse management systems and order management systems. It can also automatically recommend the most cost-effective shipping route from the retailer’s warehouse or physical store closest to a customer’s location.
“Our investment in Temando further expands our portfolio of fast-growing activities in communication and shipping solutions,” Denis Thiery, chairman and CEO of Neopost said.
“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.”
Bob Schwartz, former Magento president, has also been appointed to the Temando’s board of directors.