Logistics Startup Veho Stocks Up With Another Big Raise To Reach $1.5B Valuation

Veho, a logistics startup that helps e-commerce companies with next-day delivery, has raised a $170 million Series B round—just six weeks after a $125 million Series A that minted it as a unicorn.

The company is just the latest startup in the logistics and shipping space to raise substantial venture dollars amid ongoing global supply chain disruptions caused in large part by the pandemic. Last week, San Francisco-based freight forwarder Flexport tanked up on another $935 million, the largest U.S.-based venture capital raise of the week.

Venture-backed supply chain management companies raised a record $11.3 billion worldwide last year, according to Crunchbase data—nearly double the figure from 2020.

“The parcel delivery industry is straining under enormous demand and a permanent shift toward residential delivery,” Tiger Global Management Partner Griffin Schroeder said in a statement.

Veho’s new round was led by Tiger Global and values San Francisco-based Veho at $1.5 billion. SoftBank Vision Fund 2, General Catalyst, Bling Capital, Construct Capital, Industry Ventures and Origin Ventures also participated. Veho said it’s raised $300 million to date.

Other investors in the space say the pandemic only accelerated the supply chain’s digital transformation in recent years. “I think in the past five years the industry realized they were going to get left behind if they didn’t make the change,” Rudina Seseri, founder and managing partner of Glasswing Ventures, which has backed supply chain intelligence company Verusen, told Crunchbase News recently.

“Then COVID came and made it incredibly obvious and accelerated the adoption,” she added.

Illustration: Li-Anne Dias.