Investors continue to rain cash on trucking technology startups, with the latest beneficiary, virtual trucking carrier CloudTrucks, announcing Wednesday that it has closed a Series A funding round of $20.5 million.
Leading the round was Caffeinated Capital with participation from Craft Ventures, Khosla Ventures, SciFi VC, Kindred Ventures, Abstract Ventures and Better Tomorrow Ventures.
Founded in 2019, San Francisco-headquartered CloudTrucks offers a range of services for owner-operators and small trucking companies.
The company’s mission, according to founder and CEO Tobenna Arodiogbu, is to take over many of the back office processes owner-operators have to worry about — insurance payment, load booking and document submission — and arm them with digital tools to make their jobs easier.
In addition to closing a new round of funding, CloudTrucks launched free instant pay and a cash card product, CT Cash.
Developed in collaboration with Visa, the product helps drivers on the CloudTrucks network manage their cash flow and payments on big-ticket items and everyday purchases such as fuel and maintenance.
Drivers can use CT Cash to get paid instantly and use the card without having to take cash out of their personal bank accounts.
“The trucking industry is truly the backbone of America, yet small independent truckers are at a major disadvantage due to lack of technology solutions and increasing operating costs, such as insurance and maintenance,” said Arodiogbu in a press release.
With the card, CloudTrucks wanted to create a “seamless payment process similar to what Square has done for small businesses,” Arodiogbu added, “empowering drivers who want to be independent and help them develop strong relationships with vendors.”
The card and instant access to funds is free, with a 2% charge for cash advances issued before the completion of a delivery.
CloudTrucks intends to use the Series A funding to accelerate product development and recruitment in data science, engineering, operations and sales.