Smarter package shipping: EnRoute nabs $1.25 million

Is there a smarter way to ship packages? Enroute Systems thinks so, and the Seattle startup just reeled in $1.25 million in fresh capital to continue developing technologies that help retailers determine the fastest (and cheapest) way to get packages from point A to point B.

Customers using the technology include Zulily, Brooks Sports, Zumiez, VitaminLife and Tommy Bahama.

“We continue to provide cloud based, multi-carrier shipping solutions that combine with advanced analytics tools and a sophisticated business rules engine,” explains CEO Keith McCall, adding that the company experienced a “large growth spurt” last quarter.

The new money will continue to support the growth, with McCall saying they are adding developers, sales and support staff. It plans to raise more cash to fund expansion into Europe, and possibly Asia later this year. The company was awarded a U.S. patent on the technology last year.

Keith McCall

EnRoute’s software integrates with existing order and warehouse management technologies to retrieve package information, generating the proper carrier label depending on key factors determined by the retailer (time-in-transit, price and other factors). EnRoute then helps retailers analyze the shipping data, looking at trends such as shipments by zip code, carrier or weight. For example, a retailer could easily compare shipment times across various carriers.

McCall is an experienced entrepreneur, having previously founded Azaleos Corp. (Purchased by Avanade last November). Prior to Azaleos, he worked at Microsoft and IBM.

McCall said that he personally invested in the most recent round of financing, joined by existing investors. EnRoute employs eight people, with plans to grow to 20 by the end of the year. It has raised $3.25 million to date in angel financing, with the last round valuing the company at $13.25 million.