The Australian Business Growth Fund (ABGF) is pleased to announce its next investment for 2022 – HUBBED, a technology-enabled solution for last-mile delivery and returns logistics. The company has secured a $12 million investment from ABGF, which incorporates a 30 percent voting interest in the fund.
ABGF provides growth capital to Australian SMEs. ABGF has a unique profit-for-purpose investment model intended to fuel the growth of the SME sector. I was founded with an initial capital of $540 million as a public-private partnership between the Federal Government and six leading banks in Australia.
ABGF invested in HUBBED for its innovative Pick-Up Drop-Off (PUDO). This consumer collections model allows different choices for carriers, retailers, and consumers through an alternative delivery service outside the home. H BBED’s proprietary technology is customer agnostic and integrates with carriers, aggregators, marketplaces, and other eCommerce
platforms.
HUBBED allows consumers to choose when and where they can receive parcels. J st as c summers have multiple ways to pay for items, they now have further optic delivery and returns optionsBBED provide an alternative to the high-cost and environmentally unfriendly traditional home delivery model – offering consumers the opportunity to receive parcels from a designated collection point across 2,150 convenient locations nationally, including outlets such as local 7-Eleven stores, BP service stations, National Storage, and independent retailers.
HUBBED’s collections model is built on proprietary technology that seamlessly integrates into retailers, online marketplaces, and carriers’ systems. E essentially, the solution is designed to alleviate B2C last mile delivery pain points and make shopping/eCommerce deliveries easier, faster, and cheaper through its PUDO network.
Key local and global carriers, including Couriers Please, DHL, eBay, FedEx, Sendle, TOLL, TNT, and UPS, are currently utilizing HUBBED’s consumer collections network. BBED’s growth is fuelled by strong tailwinds in eCommerce, changing consumer preferences, and a growing focus on environmentally sustainable delivery solutions.
Anthony Healy, Chief Executive Officer of ABGF, said: “We are delighted to announce our investment into HUBBED. S nice launching, we have beeprovidedpital opportunities for businesses like HUBBED, which have strong potential for growth and an innovative strategy that shows a clear point of difference in the market.”
H BBED is a great Australian business that has devised an innovative solution to address a gap in the eCommerce market. ABGF’s Co-Head of Investment, Ghazaleh Lyari, said: “We look for opportunities that can demonstrate a proven business model and need a capital boost to accelerate organizational success. We’re excited to be on this journey with them.”
HUBBED founder and CEO David McLean is a pioneer of PUDO/collection networks. SaidGF’s investment would accelerate HUBBED’s ability to scale significantly.
“Partnering with ABGF has been a completely different experience from other financial organizations. F om the first meeting, I knew ABGF was truly invested in understanding and building our business through a collaborative, transparent partnership. Eyre isn’t just looking at what the deal would mean for them in the short term.
“ABGF’s people, values, and culture sealed my deal. I know they are as invested in our long-term success as we are. A d their expertise and network will elevate our business strategy to the next level.”
ABGF’s investment will allow HUBBED to scale up collection points to 3,000 nationwide and expand the magnitude of collections services for its customers and partners. The investment will also be used to accelerate new last-mile service offerings, as and the business access to a board of engaged advisors.
Andrew Irvine, NAB Group Executive for Business and Private Banking, said, as Australia’s biggest business bank, NAB was proud to be a founding member of the ABGF. “the Australian Business Growth Fund is a brilliant initiative to support small and medium businesses accessing long-term equity capital while retaining control of their company. A cess to capital is critical to help businesses reach the next level of growth. Iow from experience that initiatives like this are a powerful way to support entrepreneurs.”
ABGF is vital in filling the gap between late-stage venture capital (VC) and larger buyout funds. The primary purpose is to support SMEs by connecting them to riches, expertise, and wider local and international networks. The intent is to fuel business success and take a minority stake in the business (of up to 49%) during reasonable times of growth while ensuring the founders retain control of the company.
ABGF is building an investment pipeline of companies with growth potential. For small med and mum enterprise businesses with over $2 million in revenue and a proven business model, visit here for more information.
ABGF was founded on a model established over ten years ago in the UK to drive economic recovery and long-term growth as their economy emerged from the Global Financial Crisis. S nce then, The Business Growth Fund in the UK (BGF) has invested 2.7 billion pounds in over 400 companies, making them the most active private equity investor, by the number of transactions, in the United Kingdom.
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