ShipMonk, a leading provider of e-commerce fulfillment and technology solutions, today announced its acquisition of Ruby Has Fulfillment, a leading third-party logistics (3PL) technology company. The acquisition furthers ShipMonk’s efforts to expand operations throughout the United States and internationally to Canada and the U.K. and deepens enterprise-class fulfillment capabilities to serve growing direct-to-consumer (DTC) brands.
“Our growth has been driven by our ability to deliver excellent customer experiences for our clients with our e-commerce and software capabilities. Ruby Has Fulfillment is an ideal addition to the ShipMonk platform, blending substantial investments in service and technology to complement and enhance our core offering for B2B and larger clients,” said Jan Bednar, ShipMonk’s founder and CEO. “As e-commerce businesses boom across every vertical, we are scaling our services to keep pace and deliver the level of quality and reliability our clients rely on and expect for their customers. That’s true whether a business is bootstrapped and just getting started, or an existing enterprise-scale business with high volume and customized operational needs.”
With the Ruby Has acquisition, ShipMonk adds:
- Eight fulfillment centers spanning New York, Nevada, New Jersey, Kentucky, California, Canada and the U.K. With ShipMonk’s existing locations in Florida, California, Pennsylvania and Mexico, ShipMonk currently operates 11 distribution centers
- Over 1.3 million square feet of warehouse space, bringing ShipMonk’s global footprint to more than 2.4 million square feet.
- More than 700 new employees. ShipMonk’s workforce has more than doubled since January 2021, including 3,000+ employees, providing stability in an otherwise challenging supply chain and warehouse environment with ongoing labor shortages.
- Complete North American reach from Canada to the U.S. and Mexico, with best-in-class, affordable 2-day shipping service for all domestic zones.
- Goods Manufacturing Process (GMP) compliance-ready, with sites registered as FDA food facilities, medical device facility classes 1 and 2, and wholesale food licensed operations.
- Expanded customer support that includes dedicated client success managers, on-site teams, and proven process for responsiveness and quality service, including a new ticketing system, quarterly reviews, advisory councils, as well as B2B and larger client support.
- Dedicated fulfillment solutions allowing for more advanced brand guidelines and value added services like engraving, embroidery, etching, and returns refurbishment.
- Fulfillment automation and robotics systems that have successfully proven cost and velocity efficiency.
“Our shared future is one of considerable promise. With the addition of Ruby Has, the ShipMonk organization is the undisputed leader in the market, delivering the most value to merchants,” said Rafael Zakinov, founder and CEO of Ruby Has, who will assume the role of Chief Product Officer at ShipMonk. “Our combined workforces and compelling and competitive offerings position our company and our customers for success in a business environment that is rapidly scaling to demand. We have the team, technology, service and reach to grow with our clients.”
Today, ShipMonk serves a growing roster of more than 2,000 B2C businesses, including BrüMate, Liquid IV, FEAT, and Glamnetic. Ruby Has’ robust client base, including Brooklinen, The Ridge, and Overtime, expands Shipmonk’s client roster in service of both larger enterprises as well as established B2B brands. Ruby Has Sure Sort™ technology joins ShipMonk’s warehouse technology suite. The combined 3PL fulfillment offering pairs expanded Electronic Data Interchange (EDI) retail capabilities with dedicated fulfillment center setups to provide the custom flexibility that enterprise-class operations often require.
These new capabilities complement an already substantial service offering to clients, regardless of the size or needs of their business. ShipMonk’s platform allows merchants at any growth stage to scale more quickly by delegating the challenges of managing end-to-end order fulfillment, inventory management, and post-purchase customer cycles (order tracking, returns and refurbs). For larger customers, Ruby Has brings dedicated space, processes, and technology for individual brands to the ShipMonk platform. This modernized fulfillment allows orders to be picked and packed separately by a consistent team delivering high quality processing and efficiency.
Over the past 18 months, ShipMonk has raised $355 million in funding to accelerate its strategic growth and expansion to serve existing and new customers internationally. In October, the company established ShipMonk Mexico through its acquisition of El Mar Mexico. Together with the acquisition of Ruby Has, ShipMonk now has North American operations from Mississauga, Ontario, Canada, to Tecate, Mexico. These locations north and south of U.S. borders enable ShipMonk to better leverage U.S. Customs and Border Patrol’s (CBP) Section 321, which legally bypasses taxing on the majority of U.S. shipments, eliminating tariffs and import duties.
The Ruby Has acquisition closed in November 2021. ShipMonk plans to continue its international expansion, including opening a European warehouse in 2022.
Solomon Partners served as financial advisor to Ruby Has for this deal.
