Packhelp secures EUR8.5m in Series A funding round led by White Star Capital
Packhelp, a Warsaw-based startup that allows users to design and order their own custom-branded packaging, has raised EUR8.5 million in one of the largest Series A rounds in the CEE region.
White Star Capital led the investment, along with the participation of existing investors. The raised capital will be used primarily to accelerate growth in Europe.
Packhelp was founded in 2015, as a solution for the painful experience of ordering custom-branded packaging. The company founders, who have a background in marketing, sales, printing and IT, decided to leverage their knowledge to disrupt the old fashioned industry. The result is an online marketplace with the intuitive web app, that allows anyone to design and order their own packaging with just a few clicks.
The six Packhelp founders have now grown into a team of over 60. The company is strengthening its positioning across Europe, serving over 10,000 customers in over 30 countries. With a significant presence in Germany, France and the United Kingdom, Packhelp has increased its sales four-fold in the last year.
Packhelp fills the needs of not just independent sellers and marketing teams who need as few as 30 pieces of custom-branded packaging, but also the needs of medium and large e-commerce businesses. An increasing number of Packhelp's customers are household names that are loved and adored worldwide: H&M, Uber, Google, BMW, Wrangler, EA and L’Oreal.
The Series A round was led by White Star Capital, the international VC firm known for its investments in, among others, Dollar Shave Club, Clark, Meero and Freshly. Existing investors Speedinvest x, PROfounders, Market One Capital and Apostolos Apostolakis (co-founder of Venture Friends) – who backed Packhelp in its EUR2 million Seed round in May 2018 also invested in this round.
The fresh capital will allow Packhelp to continue to expand across Europe’s largest markets, positioning itself as the best go-to place for any business looking for customised packaging. The financing round will also help the company to launch new products and further develop Packhelp Pro, the company’s bespoke service for wholesale customers.
Packhelp uses technology at its core, with an elegant self-serve design tool allowing customers to create their own designs; and a technology platform for managing the orders it sends to suppliers. A portion of this investment will be used to grow the tech team responsible for bringing innovation to this traditionally pen and paper industry.
The Series A funding will also be used to strengthen and establish more cooperation with partners and suppliers. Packhelp already cooperates with a number of logistics companies, like DB Schenker and online marketplaces, such as Etsy, to provide independent sellers with the products needed to serve a top-notch unboxing experience.
“Packhelp’s founders have managed to find a unique business model. They’ve used cutting-edge technologies to make personalised packaging accessible for everyone, rather than just medium and big business. It’s the technology, unique sales process, superior customer service and constant expansion of their range that helps them conquer new markets. Packhelp is on track to become one of the major players on the global packaging market,” says Nicholas Stocks, General Partner at White Star Capital.
“We’re proving how important the unboxing experience is for not just the e-commerce industry, but for anything that’s sold in packaging. We work with thousands of brands from all over Europe, and for them, we aren’t just a supplier of their boxes, but rather their partner who’s partially responsible for the way their product is presented to their consumer. We are delighted by the trust our existing investors have in us, and we are looking forward to working alongside White Star Capital. Their support will help us to further strengthen our position in European markets and expand our product range with new, fully biodegradable products. Packhelp is whole-heartedly committed to environmental protection and we want to support our customers as they strive to reduce their business's environmental footprint,” says Wojtek Sadowski, Packhelp CEO & Co-Founder.