Tracking startup AfterShip anchors US$1M from IDG-Accel
This Hong Kong-based web platform wants to help online retailers that manage millions of orders to keep track of each productBy Elaine Huang 20 May, 2014
(L-R) Andrew Chan and Teddy Chan, Co-founders, AfterShip
Hong Kong-based package tracking startup AfterShip has today announced securing US$1 million from IDG Capital Partners (also known as IDG-Accel) to develop delivery analytics tools for online retailers, and better display tracking results.
Founded in end-2011 and launched beta in June 2012, AfterShip was the brainchild of Teddy Chan and Andrew Chan, who won Hong Kong Startup Weekend 2011 and went on to take the title of winner at Global Startup Battle Winner 2011.
The web-based platform helps online retailers, especially those who manage thousands and millions of orders, to keep track of each item’s whereabouts. “Merchants may be worried about shipments in transit for a while. If online retailers are aware of the situation, they will be able to placate customers by giving more information,” said Andrew Chan, Co-founder and CMO, AfterShip.
In addition, since its public launch in July 2013, the product has been integrated with 180 carriers globally, with more than 15,000 active users. It tracks about three million active shipments every month, and sees 25 per cent in month-on-month growth. Customers include Groupon Goods, Etsy, Zalora, Lamido and Wish.
“We saw a huge growth in December,” added Andrew, who attributed the surge in traction to the holiday season. The season to be jolly often correlates with high sales for online retailers, which requires them to track each order strenuously. With an one-stop solution, these e-commerce business owners can manage their orders with less fuss.
AfterShip is also available on the iPhone, even though Andrew noted that its mobile counterpart isn’t “really for merchants”. The features available on the iOS app is targeted towards consumers who want to track one or two orders coming in from the US or across the globe.
“We wanted to launch this iPhone app for individuals. We only have three people (in the team) … The Android version should be launched by August,” he said.
Funding from IDG-Accel
Given that he runs a small team, and a tight ship, Andrew wanted to minimise contact with too many venture capitalists and legal work.
Thus, he and Teddy chose IDG-Accel, which has more than 60 public or acquired companies in its portfolio, to deal with just one big investor with connections in China and globally. Its portfolio also includes Chinese internet giants such as Tencent, Baidu and Sohu.
The two first started talking in December 2013, when AfterShip managed to break even.
It generates revenue through cumulative shipment tiers as such: 10 cents/shipment for the first 100 shipments; 5 cents/shipment for the next 600 shipments; 3 cents/shipment for the next 2,000 shipments; and 1 cent/shipment for the remaining shipments.