Convoy, a digital freight network that connects shippers and carriers, has raised US $260 million in new capital to expand projects that would propel the trucking technology industry to new heights on April 21, 2022.
Convoy’s latest round of funding consists of a US $160 million Series E equity investment headed by Baillie Gifford and T. Rowe Price, which raises the company’s valuation to US $3.8 billion, and a US $100 million venture loan investment from Hercules Capital. J.P. Morgan also provided Convoy with a new US $150 million lines of credit.
What the founder has to say:
CEO Dan Lewis:
“We’re going to expand that program by adding more trailers and developing technologies to improve the routing and efficiency of these trailers and the price around them. It’s a pretty sophisticated system to create, which it doesn’t appear to be from the outside.
Convoy is looking to expand its 1,300-person workforce in all areas, particularly engineering, as it continues to work on solving the complex problem of route optimization when there are seemingly unlimited variables to consider. Every individual participating in the process — the driver, the warehouse manager, the procurement manager, the driver, and the dispatcher — must interact with a different software experience.
Convoy also plans to expand a new project that lets other industry brokers run their brokerage businesses on the Convoy technology platform, giving them access to Convoy’s digital network’s trucks.
More about the startup:
According to the business, Convoy expects to generate more than $1 billion in revenue this year. As the company grows, an initial public offering (IPO) may be considered, though Lewis acknowledged there is no precise plan in place. On the general market, though, B2B enterprises may often go further because partners want to know if the company they’re working with has been thoroughly vetted and is in it for the long haul.
Convoy currently offers fintech services such as a fuel card and instant payments. The company now wishes to build on previously launched products. Last year, Convoy introduced its drop-and-hook service, which allows shippers to pre-load Convoy trailers and lay them aside for pickup by truckers during more flexible times. This service has constantly been selling out since its start, which is why a portion of the funding will be used to grow beyond the current 3,000 trailers Convoy has leased out around the country.
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