A startup that provides business support for small trucking fleets will accelerate its expansion thanks to a $115 million venture capital round, San Francisco-based CloudTrucks said today.
The “series b” round was led by logistics sector investing powerhouse Tiger Global, with participation from Menlo Ventures, freight forwarder and customs brokerage startup Flexport, former Walt Disney Co. president Michael Ovitz, and current Opendoor CEO Eric Wu. The round also included follow-on investment from Caffeinated Capital, Craft Ventures, Khosla Ventures, Abstract, BTV, and Kindred Ventures. It follows CloudTrucks’ $20.5 million “series a” funding round in 2020, and pushes the firm to a total of $141.6 million in total capital raised.
Altogether, the backing brings two-year-old CloudTrucks to a valuation of $850 million for its "business in a box" solution for owner-operators and small trucking carriers. The firm says its technology streamlines administrative bottlenecks for processes ranging from instant payments to smart load scheduling and competitive rates. Looking ahead, the company now plans to amplify its existing capabilities, expand its technology to meet the needs of more drivers, grow its existing team, and broaden its digital integration with brokers and shippers.
“We founded CloudTrucks on the idea that the trucking industry has been rapidly changing and getting much more complex, while the owner-operators, the lifeblood of the trucking industry, were being left behind,” CloudTrucks co-founder and CEO Tobenna Arodiogbu said in a blog post. “We wanted to change that by building something from the ground up to ensure that owner-operators — and really all trucking entrepreneurs — have the tools to succeed and thrive in the industry.”
The funding brings together a collection of familiar names in the logistics finance sector. Tiger Global is known for its investments in e-commerce fulfillment provider Deliverr Inc. as well as seven other startups in the past two years, including SVT Robotics, Nuro, Ambi Robotics, Locus Robotics, Emark Trucks Inc., and Flexe.
In addition, Khosla Ventures is also a shareholder in the warehouse robotics and automation provider Berkshire Grey. And Menlo Ventures is also a backer of third party logistics provider (3PL) ShipBob, self-driving forklift startup Fox Robotics, automated piece-picking startup RightHand Robotics Inc., and warehouse robotics vendor 6 River Systems Inc.
“We’re thrilled to fund the next generation of drivers as CloudTrucks lowers the barrier of entry to trucking,” Steve Sloane, Partner at Menlo Ventures, said in a release. “Menlo has long held an interest in companies streamlining the supply chain and believes CloudTrucks is uniquely positioned to set drivers up for success at a time when they’re more indispensable than ever.”
Gartner, Inc.