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Freight Tech Firm Loadsmart Raises $ 90 Million in New Financing Round

Loadsmart Inc, a digital cargo booking service. Ended a $ 90 million round of funding as technology-focused efforts to increase the efficiency of its logistics operations drew attention during the coronavirus pandemic.

BlackRock led the Series C funding round Of a corporation

Innovation Capital Division. Includes investments from the venture division of Chromo Invest and the shipping company TFI International. Co., Ltd.

Roadsmart announced on Friday the containership giant AP Moeller-Maersk A / S. Maersk, who participated in a previous Loadsmart funding round, is expanding its inland transportation and logistics presence with the aim of reaching deeper into its customers’ supply chains.

New York-based Loadsmart will use this money to hire more engineers and business developers, accelerate the digital integration of trucking companies’ networks, and serve in other modes, including rail transport. Deepen.

The company has raised $ 146.4 million since its inception in 2014, including this round. In the latest round of funding, the business is valued at over $ 400 million, according to Loadsmart officials.

Loadsmart’s platform connects shippers to trucking companies and other transportation providers. This is one of the growing areas of digitally focused ventures aimed at simplifying the freight booking process through automation and other technologies.

Ricardo Salgado, co-founder and CEO of Loadsmart, hopes the company will be a “one-stop shop” for companies that transport in multiple modes of transport, including sea and under-truck cargo. I said there is. He said that about 70% of the company’s current business reserves truck-loaded shipments.

Last year, Loadsmart launched a port transportation service at Port America’s offshore container terminal in Newark, NJ, aimed at accelerating cargo flow at New York and New York ports. The service is expected to begin at the Baltimore port early next year after the coronavirus pandemic delayed its previous expansion program.

According to research firm Armstrong & Associates Inc, U.S.-based digital freight matching startups raised $ 1.37 billion in investor funding between 2011 and 2019, and around 70 in 2018 and 2019. % Has been invested. Digital freight brokers make up just over 2% of a wide range of companies. The domestic transportation management market, which generated $ 83 billion in revenue last year, including brokerage firms and other logistics services.

Convoy Inc.And Uber Technologies and other technology-focused ventures Of a corporation

The freight sector has urged competitors to step up their digital investment.

But even the largest start-ups struggle to make a profit. According to Armstrong & Associates, in 2019, three of the most prominent digital intermediary platforms, Convoy, Transfix Inc. and Uber Freight, had total revenue of $ 1.4 billion and an overall net loss. Uber sold its $ 500 million stake in Uber Freight to investors last month in a funding round led by Greenbriar Equity Group LP, injecting cash into a fast-growing but losing money brokerage firm. ..

Salgado said Loadsmart expects to make a profit by 2023 and “annual revenue will exceed $ 100 million.” Currently, the company has about 300 employees.

Salgado said the pandemic accelerated the “transition from analog to digital” by allowing major shippers to automate operations such as freight bookings and “focus a limited number of people on what matters.”

Write to Jennifer Smith (jennifer.smith@wsj.com)

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Freight Tech Firm Loadsmart Raises $ 90 Million in New Financing Round

Source link Freight Tech Firm Loadsmart Raises $ 90 Million in New Financing Round

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