If you look through the human life, you’ll see how we are always trying to simplify things. By doing so, we make our growth process a lot smoother, but at the same time, it’s actually not so easy to get there. Hence, we would develop certain avenues for the said purpose. While each of these avenues was actually pretty unique in what it brought to the table, none managed to bring an impact as big as technology did. Technology was a game-changer in every imaginable way, because alongside straightening out the complexities, it also added a different value to everything across our spectrum. This instantly raised our floor, and consequentially, enabled us in regards to pursuing bigger things. We, on our part, will go on to make the most of it. In fact, a recent funding proves that we are still doing so under some capacity.
Convoy, a digital freight network that connects shippers with carriers, has successfully raised a sum worth $260 million in Series E financing. According to certain reports, out of the total amount, $160 million were chipped in by Baillie Gifford and T. Rowe Price, whereas the remaining $100 million came from Hercules Capital in the form of venture-debt investment. Apart from the funding, Convoy also picked up a $150 million credit line from J.P. Morgan. The company will now use the newly-raised cash to scale up an initiative, which allows other brokers to run their brokerage business on Convoy’s in-house platform, thus giving them clear access to all the trucks running on the company’s digital network.
“There are 15,000 brokers and they don’t have the investment dollars or the technology access and know-how to build their own technology platform, so we’re saying, that’s fine, you can actually put your loads into our system and use our marketplace to find trucking capacity through our digital system,” said Dan Lewis, CEO at Convoy.
Convoy is further planning to invest in the expansion of its engineering team. The intention here is to become better positioned in regards to optimizing the cargo load, as well as routes within an ever-changing environment. By using such an efficient ideology, Convoy hopes to reduce the costs and take the logistics industry towards more stabilized prices.
Beyond these relatively short and medium-term goals, Convoy is also focused on a bigger goal of reducing the enormous waste emerging from the transportation industry.
“This raise enables Convoy to continue directly addressing billions of dollars in waste in the trucking industry, accelerating our development of first-to-market products and technologies, expanding our trucking marketplace and our offerings for carriers and shippers across the U.S,” said Lewis.