ShipBob’s TikTok Deal Spurs Growth, but Profits Remain Elusive

Last year was a tough one for venture-backed logistics firms, with a drop in demand for moving goods cratering Flexport’s revenue and forcing Convoy to shutter entirely. But ShipBob, which has the backing of SoftBank and Bain Capital Ventures, may have bucked the trend.

The company, which sells Amazon-like warehouse and shipping services to small online merchants, grew its revenue to roughly $500 million last year, said two people familiar with its finances, helped in part by a deal with TikTok’s fast-growing shopping service. That success has fueled its longstanding ambition to go public by next year. But ShipBob wasn’t profitable in 2023, the people said, making it a tough sell for investors, who are pushing startups of all stripes to get themselves into the black.