Freight News:
Flexport winning $8B valuation with tech-enabled global logistics
Global logistics platform Flexport announced Monday it is looking to close a $935 million series E investment round by the end of the first quarter that will value the company at over $8 billion.
The round is being led by Andreessen Horowitz and MSD Partners with participation from strategic investor Shopify; existing investors DST Global, Founders Fund and SoftBank Vision Fund 1; and new investor Kevin Kwok.
“Global trade is facing historic challenges, which demand innovative approaches that address both the current difficulties and more systemic issues. … Flexport’s platform, business model and data-driven insights together uniquely position the company to continue making a substantial impact on this multitrillion dollar industry,” said David George, general partner at Andreessen Horowitz, of the platform that was recently ranked No. 7 on FreightWaves’ 2022 FreightTech 25.
Related: FreightWaves’ FreightTech Award list
After doubling revenue in 2021 and moving almost $19 billion in gross merchandise through its platform, the company plans to use the funds to expedite technology developments needed to continue expanding its services into new regions across the globe, increasing its capabilities from the 112 countries where it is currently working.
As part of the transaction, Flexport will welcome Bob Swan, growth operating partner at Andreessen Horowitz, to its board of directors, and Shopify’s and MSD Partner’s unnamed representatives will become board observers.
| Funding details: | Flexport |
|---|---|
| Funding amount | $935 million |
| Funding round | Series E |
| Lead investors | Andreessen Horowitz and MSD Partners |
| Secondary investors | Shopify, DST Global, Founders Fund, SoftBank Vision Fund 1 and Kevin Kwok |
| Business goals for the round | Expand technology offerings and enter into more global markets |
| Post-money valuation | $8 billion |
| Total funding | $2.3 billion* |
“At Shopify, we see firsthand the challenges millions of entrepreneurs face when running their businesses, with logistics being one of the most daunting complexities in commerce today,” said Bram Sugarman, director of product acceleration at Shopify. “We are so inspired by the progress Flexport has made in this critical area and are excited to support them in their ambitious mission to modernize the supply chain, breaking down barriers to trade for businesses everywhere.”
One of these complex barriers Flexport has helped customers overcome is capacity to airfreight services. In September, the company invested in two Boeing 747-400 that were operated by Atlas Air to help customers gain capacity to transport holiday season merchandise from Asia to Los Angeles and Miami.
At the end of January, the company announced it would be adding a third Boeing 700-400 to its fleet with plans to increase cargo capacity by 50% and to add Chicago O’Hare as a destination.
Related: Freight forwarders double down on air charter networks
Flexport has also recently partnered with digital freight network Convoy, giving its customers the ability to gain full visibility into pricing and truck capacity availability once product has been received into the United States.
“The global pandemic and the pressure it put on global supply chains has made the transportation of goods — something many people took for granted — a daily pain point,” said Ryan Petersen, founder and CEO of Flexport. “This investment signals that the market recognizes the need for a tech-enabled logistics ecosystem that has the visibility and resilience to handle unexpected challenges of any scale.”
Watch now: Convoy and Flexport improve routing communication
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Source: https://www.freightwaves.com/news
Editor: Grace Sharkey