Arrive CEO Matt Pyatt, left, and President Eric Dunigan, right, celebrate the opening of the Chattanooga office in November, 2018. ( PHOTO: LEXI ALVIDREZ / FREIGHTWAVES )
Almost a year to the day after Arrive Logistics announced last June it had received $10 million in new venture capital funding, the third-party logistics (3PL) firm said on June 17 it had received additional funding – 250 percent of what was invested in it last year.
Lead Edge Capital again led the funding of $25 million in Series B equity financing, Arrive said in a prepared statement. In that statement, the company said it expected revenue of $600 million in 2019 on the back of a 100 percent annual increase in total loads shipped.
In a prepared statement, Arrive’s CEO and co-founder Matt Pyatt said the proceeds will be used “to fund our growth, accelerate investments in our proprietary technology and further build our team. Arrive Logistics is committed to driving efficiency and scale through automation. Our customers continue to rely on us to provide best-in-class service in addition to competitive pricing.”
At the time of the June 2018 investment, Arrive Logistics said the company, founded in 2014, recorded first-year revenue of $30 million, rising to $145 million in 2017 and had a target of $330 million in 2018. “We have doubled revenue for four consecutive years with our relentless focus on building the best team and technology in the domestic truckload market,” Pyatt said.
Arrive has a core of carriers that Pyatt said handled approximately 90 percent of the company’s freight. The carriers were not identified.
The 2018 investment in Arrive Logistics by Lead Edge was the initial equity stake for the venture capital company. “Our conviction in the team and go-to-market strategy has only increased and we believe they are building something unique,” Nimay Mehta, LEC General Partner, said in the statement. “Our confidence is supported by Arrive Logistics’ strong load growth performance as well as improved broker productivity and healthy gross margins.” Mehta is also a board member of Arrive Logistics.
While Arrive Logistics is headquartered in Austin, Texas, it said earlier this year it was adding 500 employees to its Chattanooga office, which opened just late last year. It also has an office in Chicago.