The Australian Business Growth Fund (ABGF) is pleased to announce its next  investment for 2022 – HUBBED, a technology-enabled solution for last mile delivery and  returns logistics. The company has secured a $12 million investment from ABGF, which  incorporates a 30 per cent voting interest for the fund.  

ABGF provides growth capital to Australian SMEs. ABGF has a unique profit-for-purpose  investment model intended to fuel the growth of the SME sector. It was founded with initial  capital of $540 million as a public-private partnership between the Federal Government and  six leading banks in Australia. 

ABGF invested in HUBBED for its innovative Pick-Up Drop-Off (PUDO), which is a consumer  collections model that allows further choice for carriers, retailers and consumers through an  alternative delivery service outside the home. HUBBED’s proprietary technology is customer  agnostic and integrates with carriers, aggregators, marketplaces and other eCommerce  

platforms. 

HUBBED allows consumers to choose when and where they can receive parcels. Just as  consumers have multiple ways to pay for items, they now have further options for delivery and  returns as well. HUBBED provides an alternative to the high-cost and environmentally  unfriendly traditional home delivery model – offering consumers the option to receive parcels  from a designated collection point across 2,150 convenient locations nationally including  outlets such as local 7-Eleven stores, BP service stations, National Storage and independent  retailers. 

HUBBED’s collections model is built on proprietary technology that seamlessly integrates into  retailers, online marketplaces, and carriers’ systems. Essentially, the solution is designed to  alleviate B2C last mile delivery pain points and make shopping/eCommerce deliveries easier,  faster, and cheaper through its PUDO network. 

HUBBED’s consumer collections network is currently being utilised by key local and global  carriers, including Couriers Please, DHL, eBay, FedEx, Sendle, TOLL, TNT, and UPS.  HUBBED’s growth is fuelled by strong tailwinds in eCommerce, changing consumer  preferences and a growing focus on environmentally sustainable delivery solutions.  

Anthony Healy, Chief Executive Officer of ABGF, said: “We are delighted to announce our  investment into HUBBED. Since launching we have been able to provide capital opportunities  for businesses like HUBBED who have strong potential for growth and an innovative strategy  that shows a clear point of difference in the market.”

ABGF’s Co-Head of Investment, Ghazaleh Lyari, said: “We look for opportunities that can  demonstrate a proven business model and need a capital boost to accelerate organisational  success. HUBBED is a great Australian business that has come up with an innovative solution  to address a gap in the eCommerce market. We’re excited to be on this journey with them.” 

HUBBED founder and CEO, David McLean is an early pioneer of PUDO/collection networks.  He said ABGF’s investment would accelerate HUBBED’s ability to scale significantly. 

“Partnering with ABGF has been a completely different experience to other financial  organisations I’ve encountered. From the first meeting, I knew ABGF was truly invested in  understanding and building our business through a collaborative, transparent partnership.  They weren’t just looking at what the deal would mean for them in the short-term.  

“ABGF’s people, values and culture sealed the deal for me. I know they are as invested in our  long-term success as we are. And their expertise and network will elevate our business  strategy to the next level.” 

ABGF’s investment will provide an opportunity for HUBBED to scale up collection points to  3,000 nationwide and expand the magnitude of collections services for its customers and  partners. The investment will also be used to accelerate new last-mile service offerings, as  well as give the business access to a board of engaged advisors. 

Andrew Irvine, NAB Group Executive for Business and Private Banking said, as Australia’s biggest  business bank, NAB was proud to be a founding member of the ABGF. “The Australian Business  Growth Fund is a brilliant initiative to support small and medium businesses accessing long-term  equity capital while retaining control of their company. Access to capital is critical to help  businesses reach the next level of growth and I know from experience that initiatives like this are a  powerful way to support entrepreneurs.” 

ABGF plays a vital role in filling the gap between late-stage venture capital (VC) and larger  buyout funds. The primary purpose is to support SMEs by connecting them to capital,  expertise and wider local and international networks. The intent is to fuel business success  and take a minority stake in the business (of up to 49%) during opportune times of growth,  while ensuring the original founders retain control of the business. 

ABGF is building an investment pipeline of companies with potential for growth. For small medium enterprise businesses with over $2 million in revenue and a proven business model,  visit here for more information.  

ABGF was founded on a model that was established over ten years ago in the UK to drive  economic recovery and long-term growth as their economy emerged from the Global Financial  Crisis. Since then, The Business Growth Fund in the UK (BGF) has invested 2.7 billion pounds in over 400 companies, making them the most active private equity investor, by number of  transactions, in the United Kingdom.