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Home»Startups & Leadership»Sendle suddenly shutters deliveries amid financial concerns after merger investor freezes funding
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Sendle suddenly shutters deliveries amid financial concerns after merger investor freezes funding

Emirates InsightBy Emirates InsightJanuary 12, 2026No Comments
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Alternative parcel delivery scaleup Sendle has halted operations just five months after it merged with two US delivery firms amid claims of financial irregularities.

In a terse statement from the firm’s PR agency, the company said “Sendle has informed its customers that it is no longer taking any future bookings. We are not able to provide any further comment at this time.”

The top of the company’s site says “As of January 11 2026, Sendle will be halting all bookings for parcel pickup and delivery.”

In an email to customers, Sendle said: “I am sorry to let you know that, effective immediately, Sendle will be halting all bookings for parcel pickup and delivery. Any parcels that have already been picked up and are in transit will be delivered at the discretion of the delivery partner. Any existing bookings scheduled for pickup on January 12 or later will be cancelled.”

The company referred customers to “the relevant delivery partner” for any existing deliveries. Sendle does not have its own delivery fleet but is a platform that partners with other delivery firms and set itself up as a pugnacious rival to Australia Post.

“We understand this may be disruptive to your business and we apologise for any inconvenience caused,” the email said.

The note sounds more like a eulogy towards its end, saying it sent more than 65 million parcels across three countries.

“We thank you for all your support,” it concludes.

The sudden closure and leaving existing customers stranded means that the company is likely to lose its existing customer base, should it survive the parent company’s financial travails.

Last August Sendle became part of a California-based parent company called FAST Group, in a strategic merger with US-based FirstMile, and ACI Logistix.

“Sendle customers will now have access to FirstMile’s specialised pickup infrastructure and ACI Logistix’s comprehensive enterprise network,” the announcement said.

FAST Group has operations in the US, Australia, Canada, India and the Philippines.

Sendle cofounder James Chin Moody said at the time that “with access to the expanded infrastructure of ACI Logistix and FirstMile, this merger dramatically increases our reach and truly levels up our offering.”

The Sendle website on Monday, Jan 12.

But it now appears that all was not well in the merger deal, which was backed by investment from Sydney private equity firm Federation Asset Management (FAM).

Logistics industry news site FreightWaves reported that FAM “froze redemptions in its $100 million Federation Alternatives Investment Fund II, citing a crisis at FAST Group that has exposed due diligence lapses, financial discrepancies, and the spectre of bankruptcy”. The issues are believed to relate to ACI Logistix and its financial statements.

Federation AM is a major investor in Sendle, had a minority stake in FAST group, but 64% of Fund II sat in that investment

FreightWaves reported that FAM notified investors via email on December 12 last year that it was suspending redemptions from Fund II citing “significant deficiencies” in ACI Logistix’s financial statements releaved following themerger.

Federation the gave $12 million in emergency operating capital into merged business to stabilise operation, replaced the CFO and appointed a chief restructuring officer.

FreightWaves reported that FAST was seeking US$60 million in debt financing from hedge funds and distressed debt specialists, but the offers were as low as 50 cents in the $1. On top of that, the company as a US$20 million DoorDash bill from deliveries.

Sendle, founded in 2014, last raised in $16 million in July 2024 at a US$60m (A$90m), having previously raised more than $90 million, including a $45m Series C in 2021. At the time, the round raised eyebrows for a clause that guaranteed investors a 4x return on any sale, while existing investors who weren’t part of the round had their rights extinguished.

The company’s investors include NRMA Insurance and the struggling ASX-listed VC Touch Ventures (previously AP Ventures). Sendle previously raised a $20 million Series B in 2019, led by Federation, $19 million in 2020, led by King River Capital, and a $5 million Series A in 2016. Other backers include Rampersand, Giant Leap, Alberts Impact Capital and Marinya Capital.

Amid is sudden closure, obversers are now waiting to see if FAST Group files for Chapter 11 bankruptcy in the US.

Chapter 11 bankruptcy lets a business to continue operating as it restructures financially and cuts a deal with creditors on repayments.

Federation Asset Management has been contacted for comment. We’ll update this story if we hear back.



Courtesy: Source link

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