Sendle has halted all parcel bookings effective January 11, leaving small businesses scrambling after the courier service sent a brief email citing immediate closure
What’s happening: Sendle, an Australian parcel delivery service founded in 2014, ceased all operations on January 11, halting bookings for pickup and delivery.
Why this matters: The sudden closure affects thousands of Australian small businesses that relied on Sendle as an alternative to Australia Post. The shutdown comes five months after Sendle merged with US companies FirstMile and ACI Logistix to form FAST Group.
Australian small businesses woke on Sunday morning to an unexpected crisis as Sendle, a popular parcel delivery service, announced it was ceasing operations immediately.
The company, which positioned itself as a challenger to Australia Post for small business shipping, sent an email to customers on January 11 stating it would halt 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,” the message stated. Any existing bookings scheduled for pickup on January 12 or later would be cancelled entirely.
The company apologised for the disruption but provided no explanation for the sudden shutdown. A banner on Sendle’s Australian website confirms the closure, and its social media accounts have been disabled.
Merger complications
The closure comes five months after Sendle merged with US delivery firms FirstMile and ACI Logistix in August 2025 to form FAST Group, creating operations across the US, Australia, Canada, India and the Philippines.
At the time, Sendle co-founder James Chin Moody described the merger as a significant step forward for customers. However, complications emerged shortly after the deal closed.
Sydney investment firm Federation Asset Management, which backed the merger, froze redemptions in its $100 million Federation Alternatives Investment Fund II in December. The fund held approximately 64 per cent of its capital in FAST Group.
Federation notified investors via email on December 12, citing significant deficiencies in ACI Logistix’s financial statements revealed following the merger. The firm reportedly provided $12 million in emergency operating capital, replaced the chief financial officer and appointed a chief restructuring officer.
Small business impact
The shutdown has left small business owners scrambling to find alternative delivery solutions. Small business owner Alicia Segal, co-founder of Australian breast pump business Bubka, said she had been blindsided by the closure.
eBay Australia issued a service update informing sellers they can no longer create new Sendle labels through the platform. The marketplace advised sellers using calculated postage with Sendle to update their listings to use Australia Post instead.
Sendle labels created but not yet scanned or picked up will not be charged, as Sendle labels are pay on scan, eBay stated in its community announcement.
Sendle was founded in 2014 by James Chin Moody, Sean Geoghegan and Craig Davis, signing deals with businesses including Shopify, eBay Australia, Squarespace and WooCommerce to provide shipping solutions for small traders. The company also offered carbon neutral deliveries.
The company claimed to be the first courier company to offer fully carbon neutral services in Australia, the United States and Canada, and said it had shipped more than 65 million parcels across three countries since operations began.
Financial backing
Sendle previously raised significant venture capital, including a $20 million Series B in 2019 led by Federation Asset Management, $19 million in 2020 led by King River Capital, and a $5 million Series A in 2016. Other backers included Rampersand, Giant Leap, Alberts Impact Capital and Marinya Capital.
The company last raised $16 million in July 2024 at a valuation of approximately $90 million, having previously raised more than $90 million in total, including a $45 million Series C in 2021.
In May 2025, Sendle announced a partnership with ReadyToShip to launch The Small Business Growth Fund, offering $10,000 in free shipping credits, mentoring and operational tools to help small businesses scale their ecommerce operations.
What happens next
Sendle does not employ drivers or operate its own delivery fleet, instead partnering with local courier companies to transport parcels. This platform-based model was central to its value proposition for small businesses seeking affordable shipping solutions.
The merged entity now reportedly faces the possibility of filing for Chapter 11 bankruptcy protection in the US if new financing cannot be secured. Industry observers are monitoring whether this route will allow the business to continue operating whilst restructuring financially and negotiating repayment terms with creditors.
For affected small businesses, the immediate priority remains finding alternative shipping partners to fulfil customer orders and maintain operations without disruption.
