The sudden collapse of Australian shipping giant Sendle has left a trail of anger, confusion, and a sense of being 'ghosted' among its customers, staff, and investors. This story is a cautionary tale of what can happen when a company's trajectory takes a turn for the worse.
Sendle, founded over a decade ago, rose to prominence during the COVID-19 pandemic by offering a cheaper shipping alternative to small online retailers. With at least $100 million in private equity investment, it promised to connect customers with couriers and facilitate billions in sales for retailers.
But here's where it gets controversial: Sendle's abrupt shipping halt left customers like Natasha Wilton, a jewelry designer, scrambling. She had parcels worth over $350 out for delivery when she received an ominous email from 'Sendle support' announcing the immediate halt of all bookings.
"We've been blindsided and ghosted," Wilton said. "It feels like a breakup."
And this is the part most people miss: Sendle's business model involved booking jobs in bulk with trucking and depot companies, then selling these slots to its customers. By the end, it had thousands of depots across Australia, offering user-friendly tracking and prices below Australia Post.
But what went wrong?
Sendle was founded by James Chin Moody, a former CSIRO executive, in 2014. It positioned itself as a 'game changer' and 'Australia's first 100% carbon-neutral shipping service.'
Several capital-raising rounds helped Sendle expand overseas, with backers including Afterpay-linked Touch Ventures and Federation. However, the merger with US companies ACI Logistix and FirstMile, which created FastGroup, may have been the beginning of the end.
Federation accused ACI Logistix of providing inaccurate financial information during the merger, leading to strained supplier relationships and adverse effects on the merged entity's operating performance.
Touch Ventures wrote down its investment in Sendle to 'nil' in December, stating it had been diluted as an investor since its last cash injection in 2023.
"Unfortunately, the Fast Group board resolved to wind down the company on January 10, 2026," Federation said.
Former Sendle employees and investors are left with more questions than answers, believing the company was already on a fraught trajectory before the merger.
"I'm not holding my breath about recouping my investment," one investor said.
ABC News has been unable to reach Sendle's founding CEO or several key figures in the newly merged entity.
So, what do you think? Was the merger the catalyst for Sendle's collapse, or were there other factors at play? We'd love to hear your thoughts in the comments below!
