One of the freight industry’s most unique startups just got a major cash injection.
Less-than-truckload booking platform MyCarrier on Tuesday announced that it had raised $22 million in a Series B funding round led by NewRoad Capital Partners.
The Scottsdale, Arizona-based company plans to use the money to expand its services beyond LTL and full-truckload shipments, targeting the multimodal space.
“From the beginning, our vision and approach were based on strong partnering, working hand in hand with carrier partners and customers to streamline the carrier and shipper experience to create exceptional business and customer outcomes,” said Michael Bookout, co-founder and CEO of MyCarrier.
Bookout and fellow co-founder Chris Scheid, who serves as president, launched MyCarrier in 2017 as a platform to connect small and midsize shippers and carriers. The platform generates automated quotes based on the user’s shipment characteristics. It also aids in booking execution with electronic bills of lading, dynamic insurance and payments.
But the secret sauce to the MyCarrier platform is its distribution model.
Rather than try to attract small and midsize business shippers at launch, Bookout and Scheid instead targeted premium LTL carriers, with the idea being to build up a critical mass of carrier integrations. That gave its electronic BoLs superior data quality, which the startup bet would generate enormous efficiency gains.
So far, that’s exactly how things have panned out, with carriers pouring money into the service.
“We’ve been able to break down technology fears previously seen throughout the SMB market and successfully deliver never-before-offered technology,” said Scheid. “Today, we are providing small and medium-sized businesses with visibility into their supply chains, once only available to large enterprises. And it’s absolutely needed given global supply chain disruptions and chaos.”
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Currently, MyCarrier serves over 5,000 shippers, including big names like Lucas Oil, IPC Global and U-Haul. It has more than 70 integration partners, boasting automation partnerships with 15 top-rated LTL carriers. That has spurred platform revenue growth of 124% year over year, as well as a 57% quarterly increase in active shippers using the service.
However, MyCarrier is looking to grow even further by expanding its suite of offerings beyond LTL and full-truckload shipments. The startup plans to invest in capabilities for multimodal shipping needs across air, ocean and rail. It also has its sights set on adding freight audit and pay, further warehouse management software integrations and a set of data intelligence tools.
Tuesday’s funding announcement was MyCarrier’s first major institutional investment since March 2021, when the firm raised $8 million. It has now received over $30 million in total investments.