Struggling Logistics Firm Flexport Raises $260 Million from Shopify

Flexport is raising $260 million from e-commerce software giant Shopify, one of its biggest shareholders, according to two people with direct knowledge, giving the struggling logistics startup more breathing room after it burned through cash last year.

Shopify will get notes that are convertible into Flexport equity in exchange for the money. The fundraising, which has not been previously reported, follows Shopify's sale of its money-losing logistics business to Flexport in exchange for equity last year. It also comes on top of a $40 million cash infusion into Flexport from Shopify last June as part of the logistics deal, three people with direct knowledge said. The cash infusion also hadn’t been previously reported.