Loadsmart, a US-based digital freight brokerage and technology company, has secured $90 million in a Series C round led by BlackRock. The round which was announced on Friday, 20th November 2020, included investors from a North American transportation leader TFI International Inc. and ocean carrier Maersk, an investor in the company since its Series A round.
Loadsmart’s set of investors now includes the largest ocean carrier in the world, the largest port terminal operator in the US and one of the largest transportation and logistics companies in North America. The funding from the Series C round will allow Loadsmart to improve how they serve shippers through doubling down on the tools to deliver excellent operational performance, as well as an increment of value-added services like mode optimization, price transparency and data insights on supply chain optimization opportunities.
This fresh capital comes as the market volatility accelerates supply chain digitization and investment giants are taking a growing interest in transportation and logistics startups.
The company’s initial service, truckload instant pricing and booking was launched online in 2015, a server-to-server autonomous truckload booking through API and TMS integrations in 2016, and drayage and transload digital services in 2019. The most recent unveiling came earlier this month when the company announced a multimode expansion supporting less-than-truckload, partial and rail.
Loadsmart’s fiscally conservative strategy is unique among its digital competitors and has led the company to a capital-efficient, sustainable growth. Instead of growing by subsidizing its customers’ freight spend, the company targets organic growth driven by operational excellence coupled with API integrations, developing the technology to provide actual value-added services to its customers. The startup has grown revenues 250% since January 2020 along with improving service quality, increasing gross margins and freezing operational expenses at 2019 levels.
What Loadsmart has to say
“As the secular shift from analogue to digital has continued to accelerate throughout the logistics industry, in which volatility has become the norm, we are proud to help our customers leverage Loadsmart’s technology to secure capacity and exceptional service,” said Ricardo Salgado, Loadsmart co-founder and CEO.
According to Co-Founder and President Felipe Capella emphasized, “We are a one-stop-shop for digital logistics execution. BlackRock’s support will be critical to consolidating our vision of offering end-to-end multimodal digital logistics services. We want to provide shippers and carriers with logistics solutions that are simple, instantaneous and integrated.”
Transforming the future of freight, the company uses artificial intelligence, machine learning and strategic partnerships to automate how freight is priced, booked and shipped. Advanced technologies paired with deep-seated industry expertise, it fuels growth, simplifies operational complexity and improves efficiency for carriers and shippers alike. It was founded by Felipe Capella and Ricardo Salgado in 2014.
BlackRock is an investment company that provides services to institutions, intermediaries, foundations, and individual investors. It was founded by Sue Wagner in 1988, with headquarters in New York.
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