The past couple of years exposed many flaws in the global and domestic supply chains—and investors have taken note that it is an industry ripe for disruption.
Seattle-based Convoy is the latest company in the sector to raise big money at a bigger valuation—as the digital freight network closed a $260 million round.
The funding includes $160 million in a Series E equity round led by Baillie Gifford and funds and accounts advised by T. Rowe Price Associates, and a $100 million venture-debt investment from Hercules Capital. The equity portion of the round values the company at $3.8 billion.
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The company has also secured a new $150 million line of credit from JP Morgan.
Through its smartphone app, Convoy’s platform helps connect shippers and freight brokers to a network of 400,000 trucks. Matching shippers with trucks helps move freight while also reducing the number of “empty” miles driven by truckers.
“The pandemic highlighted how important trucking is and how volatile and inefficient this industry can be,” said co-founder and CEO Dan Lewis in a release. “We know that we can do better by using modern technology and algorithms to help orchestrate freight logistics, improve service, reduce waste, and help drivers.”
The supply chain management sector saw an unprecedented amount of venture dollars last year and is on pace to break that number this year, according to Crunchbase data. While VC-backed companies in the space raised nearly $13.5 billion in 2021, this year startups already have closed rounds of more than $7 billion, Crunchbase data shows.
Illustration: Dom Guzman
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