Shyp confirms it’s raising $50 million in Series B funding led by Kleiner Perkins Caufield & Byers (KPCB). The round brings Shyp’s total funding to $62.2 million.
The on-demand shipping service is also launching a beta program in LA today. Already, Shyp serves San Francisco, New York, and Miami.
The company was rumored to have made a large raise earlier this month. Founded in 2013, Shyp is a mobile app and service that will pick up your items to be shipped from your home, package them for you, and ship them off in exchange for a $5 fee. The service has already had marked success increasing its customer base 20 percent month over month, and growing shipments by 500 percent since launching in New York and Miami.
“Retention is off the charts,” says founder Kevin Gibbon. He says the new round of funding will go toward expanding to new cities inside the U.S. A smaller portion of that funding, however, will help develop and test new products, like Returns, which enables people to use Shyp to return products to a variety of partner retailers. Going forward, much of the company’s focus will be on its consumer population.
That’s a big shift from where the company was headed a year ago. When Shyp first moved into New York, 70 percent of the people it served were businesses. The plan had been to help give small business and the blossoming market for hand-crafted goods a shipping infrastructure.
But consumer adoption has been a lot higher than expected.
“We’re looking at returns and I know we’ve just scratched the surface of that and there’s room to go deeper,” he says. Recently, Shyp ran a marketing campaign in San Francisco, where it agreed to do free pickups of donations to Goodwill. The company moved 10 tons of donations.
Gibbons says the project got him thinking about the kinds of services his company could provide in local shipping.
While the team at Shyp is dreaming up new products, the company will seek guidance from John Doerr at KCPB, who has led investments in Amazon.com and Google in the past.