Bespoke packaging marketplace, Packhelp, has just raised €40 million in Series B funding. The Warsaw-based company, launched in 2016, has become one of Europe’s leading custom packaging marketplaces and is on a mission to empower more brands to bring sustainable packaging into their business approach.
Paris-based B2B tech growth fund InfraVia Growth led the funding round, with participation from PortfoLion, FJ Labs and the European Investment Bank. Previous investors Speedinvest, ProFounders, Market One Capital, Inovo, White Star Capital and business angels also joined, which brings the total Packhelp has now raised to €52 million.
Packhelp’s software enables companies to collaborate with an international network of packaging suppliers, removing complexities from the order process and providing expertise for brands to help reach their packaging goals. So far, the company has enabled over 50,000 customers in over 30 countries to deliver their products in unique packaging.
Global brands such as H&M and Uber Eats, as well as direct-to-consumer companies including Hims, Copenhagen Grooming and Ava & May, rely on Packhelp’s services to reach and delight their customers daily. Last year, the company was named the fastest-growing tech company in Central Europe in Deloitte Technology’s Fast 50 ranking.
The innovative company is democratising the bespoke packaging industry. Traditionally, bespoke packaging has been a luxury that small companies just couldn’t afford as the majority of factories require a minimum order that is out of small businesses’ budget and capacity. Packhelp Studio changed this by allowing businesses to place orders starting from 30 pieces and have them delivered within two weeks – helping to keep costs low for startups and solo entrepreneurs. In addition, the platform has an online editor which lets small business owners design their own packaging with the help of a library featuring ready-to-use patterns, shapes and fonts without having to use complicated design software like Photoshop or employ an external designer to do it for them.
The success of Packhelp Studio led to the launch of Packhelp Plus, a one-stop-shop for mid-sized companies that eliminates the need for these businesses to rely on multiple vendors. Packhelp Plus allows brands to completely redesign their packaging from scratch, clients get instant quotes on the platform, bespoke sizes and inserts, and experts to help and advise on the best packaging solution.
Wojtek Sadowski, co-founder and CEO at Packhelp, said: “The world needs a new approach to packaging as it plays a key role in the creation of the online shopping infrastructure. It influences purchasing decisions, inspires customers to recommend products, and can increase customer retention. With new online stores popping out across the world, social commerce on the rise, growing competition and rising acquisition costs there isn’t a better moment than today to invest in the great unboxing experience.”
Sustainability is at the heart of Packhelp’s vision and strategy. Packhelp makes it easier for brands across the world to incorporate sustainable packaging into their supply chain. It has been investing in sustainable alternatives for all its product ranges and in 2020, 65% of all packaging items sold via the marketplace were produced with recycled materials and 92% of them were recyclable. Packhelp customers can request to have their order printed using FSC-certificated materials and the company’s experts can guide customers on how to minimise the amount of packaging they use. The forward-thinking company works with multiple manufacturers across Europe to cut freight emissions and transit costs when delivering orders to customers.
Having successfully launched in the Netherlands, Sweden and Romania earlier this year, this new funding will enable the packaging business to accelerate its international expansion plans, and scale its global supplier network. With plans to establish local teams, localise its product portfolio and build distribution hubs in key areas, Packhelp will be able to better serve its customers and run resilient operations, giving it an edge over competitors. An additional next step for the company will be to expand its offering with a SaaS product for enterprise companies. Central to the solution will be a verified base of sustainable packaging suppliers, as well as features that help measure carbon footprint.
