How Shipit CEO Allan Guiloff grew Shipit to $2.2M revenue and 800 customers in 2024.

guys there you have it ship it and a process in 2021 over 13 million dollars in volume from e-commerce sellers by helping them say okay where do you want to send that package of shoes we'll pick the carrier we'll send it their take rate was 25 well back then it was 18 per 17 18 today in 2023 because of macroeconomic conditions in Chile retailers you know higher interest rates less retail sales Etc they'll do about 6 million in gmv he did the hard work last year of downsizing from 110 employees to 25 they were burning 200k last year this year on track to profit 500k be able to make 1.3 million in terms of take rate on 6 million gmv hoping to just buy additional time here as they continued to scale 800 customers today because he lost 200 when he increased prices but that's extra margin to the bottom money he's bought himself more sustainability more longevity we'll see what happens next hey folks my guest today is Alan gieloff he's a commercial engineer from the University of Chile experienced in business incubation and a passionate entrepreneur and sports Enthusiast he co-founded ship it a successful business that achieved achieved over 12 million in annual revenue with a team of 110 folks operating in two markets uh focused on Tech logistics for e-commerce Allen you ready to take us to the top let's do it let's rock all right all right give me a customer story here name someone that's using you and how they're using you today all right so let's see today we have a customer which is called Semoran which is women's shoes and they have their stores set up in I don't I think it's woocommerce shop and they easily integrate with that platform like ourselves ship it to import their sales and will automatically choose the best current company to fulfill their Logistics needs either is it same day delivery next day or delivery for next week and after that we're gonna have two uh situations we are going to either send the carry company to the cup or for smaller companies we we ourselves we have a small operation we call them Heroes where we pick up the heroes the heroes yeah they go to our crosstalks and then the carrier company goes to our Cross Dock and pick up picks up there interesting how so I guess how much of how much have you hired internally for this versus or external contractors how many heroes are full-time on the team uh at the time being I'd say like 14 it's it's like a scalable we've tried to focus on a very scalable scalable operation so at the at the beginning there were like full-time employees for us but then we had them change to a like company contractors right yeah yeah yeah I guess why did you make that decision just you want to decrease your burn uh no it's it's I mean Chilean laws and actually like South American laws are very like employer hey sorry employee uh focused so it's actually very very hard to to have them in your in your in your payroll like it's gonna be expensive uh and it's and they also they also prefer to be as contractors so yep we've had like the freight forward CEO on freight web CEO on there they're connecting sort of shippers sorry you know e-commerce producers in Mass with sort of carriers you're you're really doing this on at a brand level more more detailed level would you would you agree with that statement or no uh what do you mean at the brand low yeah so you just gave the customer example what's a very specific brand right you mentioned I think a shoe company right and you're helping them I think find Space on whether it's trucks ships planes to ship their e-commerce Goods is that right or no no actually uh we are responsible from the beginning to the end of what happens to that parser to that package so we are going to choose which carrier company is the best according to the customers uh specifications so the customer might say on on the on the platform like give me my best alternative in the shortest times and we're going to choose and we're going to be responsible so actually we're going to connect those 12 million uh in Revenue we're going to collect the full parcel price have our profit and then pay to the carrier company so we actually have like a 25 gross profit and actually I called it GMB and then profit because it's a take rate of 25 yeah so just to write that that's very helpful thank you just to be clear the brand you work with never actually picks their carrier you just have your own internal Network and you're picking where to put that parcel of socks or shoes or whatever exactly yeah and I'm responsible of a negotiating contracts with carry companies so if they don't deliver in three days um they're gonna charge me for free and maybe I have a different SLA with the customer like fifth day it's gonna be for free oh what's going on there YouTube good to see you guys now imagine this you love watching these interviews with SAS Founders but imagine if we took all of the valuation data out from over 2807 interviews I've done manually saves you a lot of time well we've done this we've built the into the beautiful interface inside of founder path check this out I'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals for evaluation this year now the secret valuation is there's many different ways to value a SAS business so the reason you're going to see three or four different evaluations inside of your founder path dashboard this is all free by the way is because depending on who's doing the buying of your SAS company you're going to get a different valuation a VC is going to pay a different valuation private Equity Firm is different if you're going to do a minority sale that's different and if you sell the whole business that's a different valuation you can see all those when I hover over here here right so the teal is what a VC would pay yellow is what private equity and red is if you sold the whole thing outright now what's cool about this is this is not built off random data again you guys hear these interviews on YouTube all these datas are built from real-time valuation data points Founders share with us on the show so traction 1.2 million seed round 3.7 raise they sold 22 percent of their business go in here and filter by the event maybe you only want to see companies that have sold the whole business well here are a bunch that have been acquired the valuation and the multiple maybe you're going out right now and you're raising your seed round well go in here and look at all this recent seed deals that went down what they raised what valuation they raised at and what percent that they sold there's never been a larger data set of SAS valuation than what you can get now inside of founder path and we're thrilled to bring it to you all right we're gonna go back to the YouTube video here in a second but if you want to check this tool out if you want to jump in and sign up you can check it out for free to get your valuation at this link this link founderpath.com forward slash products forward slash evaluations or if you go to founderpath.com and hover over products click on get your evaluation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform I hope to see you there all right let's jump back into the interview and break down these margins so I mentioned you mentioned 12 million gmv in your bio of the right yeah yeah I mean there has been some slight changes because Chile I don't know if you know but Chile has had a lot of political and economical conflict uh so maybe like a scroll back 2019 we're selling 2.5 million 2020 we sold 10 million 2021 we sold uh like almost 13 million and 2022 I'm sorry yeah 13. and then 2022 we sold 6 million so what what the hell happened uh basically like like I said political and economical like uh the Pension funds the government approved four different withdrawals of the Pension funds there was massive uh uh inflation with this inflation came along like uh interest rates are surging interest rates retailers so I decreasing their sales and my sales depend on the retail sales so basically a lot of retails went out of business a lot of them decreased their sales by half and many of them had to cut costs and like go and negotiate directly to their car company so uh this year to be just through a completely honestly this year we're gonna sell probably the same 6 million we did last year so well let's talk more about that in a second but I want to break down the margin profile here for a second so you did 6 million 2022 last year you're saying of the 6 million 25 of that is your take rate or your bottom bottom line no ticket okay yeah and let's use this year as an example for so we're gonna sell probably the same six million we have a take rate of 25 so that's going to be around 1.3 right yep and probably as an ebitda like bottom line like you say it's going to be like 500 thousand and look it's impressive that you're PR in this market it's impressive that you're profit or you're planning to generate profits I I it's it's a it's a long story Nathan because I mean we we're a team of 110. we had operations in Chile and Mexico but last year we were raising funds we had a term sheet signed with two VCS and they withdrew the term what was what were the terms how much were you raising and what valuation we were raising 10 million at the 13 pre-money evaluation and out of those 10 million...