While Austin may not quite be a huge logistics technology hub, it’s certainly becoming one with startups such as uShip Inc., Convey Inc., Shipwell Inc. and ShipStation using sophisticated software to get things from point A to point B faster and more efficiently.
Now Arrive Logistics Inc., one of the local leaders in the freight logistics space, is ready for a big leap forward, fueled by a new $25 million series B funding round led by its mainstay investor, Lead Edge Capital. The company plans to spend the new money on new hires and advancing its freight shipping, monitoring and brokerage logistics software.
The startup was founded in 2014 by CEO Matt Pyatt and President Eric Dunigan, and it raised a $10M series A in June 2018. It uses matching algorithms to pair shipping companies with businesses that are looking to get their products to new places.
It had 10 employees in 2014 but has since grown to more than 800, with its headquarters in Austin and offices in Chicago and Chattanooga, Tennessee. It expects to reach $600 million in revenue in 2019, and it anticipates growing its team to about 1,000 employees.
It currently has 35 openings listed across its three offices.
Investment in freight technology has steadily grown in recent years. About $1.3 billion was poured into the industry in 2017, according to FreightWaves and PitchBook. That figure ballooned to $2.9 billion with a further $1.6 billion invested in the first quarter of 2019 alone.
Lead Edge Capital General Partner Nimay Mehta, who is also an Arrive Logistics board member, said in a statement the startup is on track to become a market leader in freight brokerage: “Since our first investment in Arrive Logistics last year, our conviction in the team and go-to-market strategy has only increased and we believe they are building something unique.”
Arrive Logistics has leased 78,000 square feet at MetCenter near the airport for a new headquarters. Rand Construction Corp. is the general contractor for the interior buildout and the space should be ready for move-in later this summer.
Arrive Logistics earlier this year hired Richard Shields as chief financial officer and Michael Senftleber as executive vice president of product. Shields previously spent nearly three years as CFO of Yeti Coolers and Senftleber previously led the product team at software maker Spredfast.
Original article posted here: https://www.bizjournals.com/austin/news/2019/06/18/arrive-logistics-raises-25m-for-freight-tech.html