Packer invests $5 million in shipping aggregator Temando

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Fast growth freight aggregator Temando, an Australian start-up, is the latest e-commerce business to attract a significant investment from James Packer’s Ellerston Capital.

E-commerce has received another boost from big business and specifically, James Packer’s investment fund, Ellerston Capital. Freight aggregation specialist Temando is the target of Packer’s latest foray into e-commerce, with a $5 million injection to foster the company’s expansion locally and internationally.

“The recent investment by Ellerston Capital in Temando gives us both the financial resources and the ability to attract seasoned executives to work with the business, allowing us to take things to the next level,” says Carl Hartmann, Managing Director, Temando.

The company’s success has been built on its innovative, time- and cost-saving cloud-based software. Temando’s business model is about aggregating 200 of the top freight carriers into a single access point for the online retailer, allowing them to seamlessly offer best rates and delivery options for every customer. According to Hartmann, the idea for Temando originally came to him when he tried in vain to find a carrier who could cost-effectively ship a statue of Buddha to the other side of Australia. There was no simple way to find the right shipping solution.

Today, Temando seeks to turn fulfilment from a cost centre into a profit centre. The formula has been a major success in the digital shopping era, evidenced by the company’s impressive growth since launching in 2007 and its attractiveness to investors like Ellerston. Hartmann has been particularly proactive in the e-commerce industry, both as a contributor to Power Retail and a regular speaker at events such as Online Retailer and the Internet Conference.

“Temando was created by the industry, for the industry,” says Hartmann. “The stronger Temando gets means that shipping prices will continue to remain competitive, and where possible, get lower due to economies of scale, in an industry with ever rising costs. Ultimately, we will remain focused on our customers in our quest to keep shipping prices low and conversions high.”

Packer and Ellerston Capital have shown plenty of interest in Australian e-commerce businesses over the past 12 months, investing heavily in DealsDirect and Catch of the Day, and now moving to the supplier side through Temando. Who’s next?

Article by Grant Arnott

Grant Arnott is the editor and publisher of Power Retail. Other hats include Content Manager for the Online Retailer Conference, Program Director for the Online Retail Industry Awards, Global Head of The Media Pad Pty Ltd, and adoptive father of a fast-growing Golden Retriever. Grant has a specialist business publishing background spanning more than a decade, and contributes regularly to a multitude of print and digital business media.