Eurora Solutions boosts mission to tackle e-commerce shipping delays after $40m Series A round

Eurora Solutions, an Artificial Intelligence/Machine Learning-backed (AI/ML) cross-border e-commerce compliance platform, is announcing the closure of its oversubscribed Series A round, raising $40 million (£31 million). Amsterdam-based Connected Capital led the round, with existing investors, including Change Ventures, Equity United and Eurora’s Founder Marko Lastik also participating.

Eurora already has over 200 paying clients worldwide, including some of the biggest e-commerce players in Asia, such as JD.com, Yanwen and Topyou. These three companies alone process around a billion parcels per year and deliver to more than 120 countries. The new funding will be used for geographical expansion in the UK, the US, and the Middle East, where rapid and high growth in the sector is expected, and product development and potential add-on acquisitions. In the past decade, global parcel shipping volume has almost tripled, and by 2026, this market is expected to reach over 260 billion parcels delivered.

In July last year, the EU ended the €22 (£18.57) import VAT exemption, and new trading regulations between the EU and the rest of the world gradually came into effect. This was intended to create a level playing field with local European manufacturers and retailers. Complying with this new regulation in the high volume, low value-per-package e-commerce market has been a challenge for merchants and logistics operators from the UK, the US, China and the rest of the world.

Eurora’s proprietary AI/ML-based platform automates tax, compliance and customs services. It assigns e-commerce products an appropriate HS code, calculates the applicable VAT and duty amounts, and automatically creates electronic declarations for EU duties and taxes via simple API integration. The platform delivers more than 96% accuracy for e-commerce packages despite often patchy input data and operates at a fraction of the time and price of hybrid or manual code allocation solutions commonly used today. The B2B platform can be used by online sellers, marketplaces, logistics and postal companies, as well as tax and customs authorities.

Marko Lastik has over 30 years of experience in logistics and is the founder and visionary of the platform, having created it together with 22 scientists from the world’s top 1% of universities, such as Tallinn University of Technology, StatLab (a spinoff company of the University of Tartu) and Software Technology and Applications Competence Centre in Estonia.

The Founder and CEO of Eurora Solutions, Marko Lastik, said: “The number of different declarations, codes, reports, records and tax calculations required in the international shipping business is ever increasing. Without the correct data sets and automated solutions for tax calculations and electronic declarations, cross-border trade has slowed down, resulting in severe delays, fines, increasing costs, loss of customers etc.

“Eurora’s AI uses 500+ million records of training data from actual transactions from the largest logistics providers in the world. By using Eurora’s platform, merchants can make deliveries faster and at lower costs, which results in increased customer satisfaction and trust.”

Shaffy Roell, Associate at Connected Capital, said: “We are excited to lead the investment into Eurora and actively support the team in scaling the platform globally. The founder and the full management team have impressed us with their quality, domain expertise, and vision for the company.

“We have seen a clear push from regulators to improve transparency and reporting for the increasing number of goods that enter through customs. We believe that Eurora has built a truly unique AI/ML-based platform, significantly improving compliance while reducing package delays and lowering costs for e-commerce parcels shipped into Europe.”

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