In a significant move within the e-commerce sector, the innovative startup Swap has successfully secured $40 million in Series B funding. This round was led by ICONIQ Growth and saw participation from QED Investors, Cherry Ventures, Portfolio Ventures, and 9900 Capital. Founded in 2022 by Sam Atkinson and Zach Bailet, Swap aims to revolutionize logistics management for direct-to-consumer brands through its unified platform. By integrating artificial intelligence (AI) into its operations, Swap plans to streamline inventory management, cross-border shipping, and return processing, ultimately facilitating smoother international expansion.
Swap's platform consolidates various logistics functions—such as order tracking, cross-border shipping, and inventory forecasting—into a single system. This integration allows brands to manage their supply chain more efficiently while reducing reliance on multiple service providers. The founders identified a gap in the market where small to mid-sized e-commerce businesses had to use several tools to handle their operational challenges. Swap addresses this issue by offering an all-in-one solution that simplifies logistics management.
The company's AI-driven capabilities are set to enhance its services further. With products like Swap Inventory, the platform can forecast trends and demand by analyzing data from warehouses, Shopify stores, and return data. Additionally, AI assists with cross-border tax filing and return processing. The technology leverages models such as Claude, Gemini, and ChatGPT to provide robust support for these functions. This advanced approach not only improves efficiency but also helps brands make informed decisions regarding international pricing strategies.
Atkinson and Bailet bring diverse backgrounds to the table. Prior to founding Swap, Atkinson worked as a corporate lawyer and at business banking startup Juni, while Bailet had experience at Deloitte and Tefron. Their combined expertise has been instrumental in shaping Swap's vision and growth trajectory. The company currently serves fashion labels like Nadine Merabi, Motel Rocks, and The Frankie Shop, catering primarily to brands generating between $5 million and $100 million in revenue.
With the new capital injection, Swap plans to expand its international footprint. Key initiatives include assisting brands with international sales by calculating duties and taxes at checkout, enabling customers to prepay these costs. The company is also partnering with FedEx to manage international shipping and intends to open a fourth office in New York this year, adding to its existing locations in London, Tel Aviv, and the Netherlands. As it grows, Swap aims to serve larger clients gradually and establish itself as a leader in the competitive e-commerce logistics space.
The investment underscores the potential of Swap's comprehensive platform in addressing the complex needs of e-commerce logistics. By providing an integrated solution that leverages AI, Swap is poised to transform how brands manage their supply chains, particularly when expanding into international markets. The startup's innovative approach positions it well to capture opportunities in regions like Australia, Europe, Canada, and the US, solidifying its role in the evolving e-commerce landscape.