24 Apr 2024
Arrive Logistics, an Austin-based freight brokerage startup, said today it has closed on a $25 million Series B financing led by existing backer Lead Edge Capital (LEC).
Founded in 2014 by Matt Pyatt and Eric Dunigan, Arrive Logistics has now raised a total of about $35 million. The company raised a $10 million Series A around this same time last year, according to AustinInno.
Arrive Logistics serves as a self-described “modern broker” for shippers and carriers. In a press release, the company said it’s been growing rapidly and now has more than 800 employees with offices in Chicago and Chattanooga, Tenn., in addition to its home base of Austin. At the time of its funding last June, Arrive Logistics had 450 employees, according to AustinInno. It has used data “to hire the right people” and invested “heavily” in their training and retention, according to CEO Pyatt.
The startup is growing in terms of dollars too. Arrive Logistics has doubled revenue for four consecutive years, said Pyatt, who projects that revenue will reach $600 million this year. He added that “total loads shipped have increased by 100 percent year-over-year.” Again, at the time of its funding last June, AustinInno noted that Arrive Logistics had “reported generating $30M in revenue in first-year sales and hit $145M in 2017” while expecting to reach $330 million in revenue in 2018.
In a press release, LEC General Partner and Arrive Logistics board member Nimay Mehta said his firm has been impressed by the company’s “strong load growth performance as well as improved broker productivity and healthy gross margins.” (For reference LEC has also invested in companies such as Alibaba Group, Spotify and Uber.)
The company plans to use its new capital to continue hiring and make investments in its “proprietary” technology.
As AustinInno’s Brent Winstrom noted in an article today, Austin is gradually becoming a logistics tech hub of sorts. Other venture-backed startups based in the Texas capital in this space include uShip, Convey, Shipwell and ShipStation (which was acquired by Stamps.com for $50 million in 2014), Winstrom pointed out.
Original article posted here: https://news.crunchbase.com/news/austins-arrive-logistics-raises-25m-series-b-projects-600m-in-revenue-for-2019/
