FAST Group, the newly formed logistics conglomerate that brought together Australian parcel disruptor Sendle, US-based ACI Logistix, and FirstMile, is facing a severe financial crisis just months after its August 2025 merger. The situation escalated on 12 December 2025 when Federation Asset Management notified investors that it was suspending redemptions from its Fund II, which held approximately 64% of its capital in FAST Group.
The Crisis
In its investor notice, Federation Asset Management cited “significant deficiencies” discovered in ACI Logistix’s financial statements following the merger. The firm stated that ACI Logistix “was not current on its financial obligations at the time of the merger, contrary to representations made during due diligence.”
The revelation forced Federation into emergency mode. The private equity firm provided $12 million in emergency operating capital to stabilise FAST Group operations and took immediate remedial action, including replacing the CFO and appointing a chief restructuring officer to take control of the financial situation.
The combined entity had been projected to operate with an estimated 300 to 900 employees and revenues between $130 million and $200 million, making the scale of the financial misrepresentation all the more alarming.
What Went Wrong
The FAST Group merger, announced in August 2025, was meant to create a last-mile logistics powerhouse spanning the United States and Australia. Sendle, which had raised more than $100 million in venture funding and shipped 65 million parcels across three countries, was the highest-profile brand in the deal.
However, as Startup Daily reported, the merger appears to have been built on a flawed foundation. The financial deficiencies within ACI Logistix were not identified during due diligence, and the true state of the company’s obligations only came to light after the deal closed. With Federation’s fund so heavily concentrated in FAST Group, the fallout has been immediate and far-reaching.
The fund freeze means investors cannot withdraw their capital while Federation works to assess the full extent of the damage and determine whether FAST Group can be restructured into a viable operation.
Implications for Australian Small Business
Sendle carved out a distinctive position in the Australian market as the country’s first 100% carbon-neutral delivery service. Its flat-rate pricing, no-contract model, and free pickup service made it a popular choice for small e-commerce operators, home-based sellers, and marketplace merchants shipping anywhere from a handful to several hundred parcels each month.
The financial turmoil at the parent group level now puts that service in jeopardy. While operations continue at the time of writing, the combination of a frozen investment fund, a replaced financial leadership team, and the appointment of a restructuring officer are hallmarks of a business fighting for survival.
For Australian SMBs relying on Sendle, the situation warrants close attention. Businesses should consider diversifying their carrier arrangements as a precaution and ensuring they have accounts established with alternative providers. As Supply Chain Dive noted, the situation deteriorated further in January 2026, ultimately leading to the shutdown of FAST Group’s operations.
This is a developing story. The outcome will depend on whether the restructuring efforts can stabilise the business or whether the financial deficiencies prove too deep to overcome. Either way, it serves as a cautionary tale about the risks of cross-border mergers and the critical importance of rigorous financial due diligence.