Shipit Revenue (2024)

Shipit's GMV grew from $2.5M in 2019 to $10M in 2020 and reached approximately $13M in 2021. The trajectory reversed sharply in 2022, when GMV fell to $6M as Chilean retail contracted amid pension fund withdrawals, inflation, and rising interest rates. Guiloff told Latka the company expects to record the same $6M in GMV for 2023.

Shipit had approximately 1,000 recurring customers as of late 2022. Following a price increase of roughly 10 percent implemented in early 2023, the customer base declined to approximately 800, a loss of 200 customers. Guiloff estimated revenue churn from those departures at roughly 7 percent and characterized the outcome as positive because the remaining customers generate higher margin.

A named customer example provided by Guiloff is Semoran, a women's shoe retailer that integrates its WooCommerce or PrestaShop store with Shipit's platform to automate carrier selection and parcel fulfillment. Pricing is structured as a take rate on GMV rather than a per-seat or flat subscription fee. Guiloff explored converting to a SaaS model in early 2023 but abandoned the idea after customer interviews indicated strong preference for the existing value proposition.

Shipit earns revenue as a take rate on the gross merchandise volume it processes for ecommerce merchants. The company collects the full parcel price from the merchant, retains its margin, and pays the carrier. The take rate stood at 18 to 19 percent through 2022 and rose to approximately 26 percent in 2023 following the price increase, representing a roughly 40 percent improvement in the rate. On projected 2023 GMV of $6M, that yields approximately $1.3M in take-rate revenue.

EBITDA for 2023 is projected at $500K, implying an EBITDA margin of roughly 38 percent of take-rate revenue. The company swung from burning approximately $200K per month at its peak in 2022 to generating positive cash flow of $40K per month as of mid-2023. Accounts payable to carrier partners had extended to 2.2 to 2.5 times normal payment terms during the crisis period, accumulating to approximately $2M in supplier debt, which Guiloff has been repaying on a daily basis since the restructuring.

Gross margin, as described by Guiloff, is approximately 25 percent of GMV, which is equivalent to the take rate. The company does not operate a free tier. Churn following the 2023 price increase was approximately 7 percent on a revenue basis. CAC, LTV, and payback period were not discussed in the interview.

Shipit employed 110 people across Chile and Mexico as of 2022. Following the failed VC raise and the decision to close the Mexico operation, Guiloff conducted a layoff on August 5, 2022, reducing the team from 40 employees on that call. The company stabilized at 25 employees by mid-2023. In addition to the core team, 14 independent contractor heroes handle parcel pickup operations as of mid-2023.