To strengthen platform construction, Shopify invests in logistics giant Flexport

Shopify joined other investors in a $935 million funding round aimed at scaling Flexport , a global digital freight forwarding and package tracking company .

It is reported that the financing was led by US companies Andreessen Horowitz and MSD Partners . Flexport also stated that Shopify is a "strategic investor" in the new round of financing .

According to Flexport , it will use the financing to strengthen the construction of its logistics platform , which is currently used by customers in more than 100 countries. Flexport's software is designed to optimize customers' supply chains and automate the transportation process to save time and money in delivering goods from factories to stores.

Bram Sugarman, director of Shopify , said logistics is one of the most complex issues in business today , and Flexport is providing solutions for online merchants who need to ship goods around the world.

Sugarman mentioned that Shopify is very pleased with the progress Flexport has made in the logistics field and is happy to support them in breaking down trade barriers for companies everywhere and modernizing the supply chain .

The investment comes as Shopify's stock price on the Toronto Stock Exchange has fallen from more than $2,000 in mid-November to $ 1,100 as of Monday afternoon .

The company's stock price has plummeted more than 40% in the past six months. Shopify staff said that as epidemic prevention policies are gradually relaxed and offline store shopping resumes, the "extreme levels" of online shopping in the early days of the epidemic will gradually return to normal .

Investing in Flexport is Shopify's latest move in the logistics and fulfillment sector . In the fall of 2019 , Shopify acquired Massachusetts-based fulfillment solutions company 6 River Systems in a cash and stock transaction worth $450 million .

The acquisition of 6 River Systems gives Shopify ownership of fulfillment software and technology, such as mobile robotics that can deliver goods from warehouses faster and more efficiently .

Shopify , which makes software that helps merchants build online stores and process payments , said in mid-2019 that it plans to spend up to $1 billion over the next few years to build a network of third-party warehouses across the United States to help its partners reduce shipping costs and speed up delivery .

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