Last-mile solutions provider OneRail has raised $42 million in venture capital backing for product development and to expand its team.
The Series C funding round was led by Los Angeles-based Aliment Capital. The venture raise brings OneRail’s total funding to $109 million.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as … split orders, out-of-stocks, or worse, cancelled orders,” OneRail founder and CEO Bill Catania said in a news release.
The Series C investment will be used to expand OneRail’s SaaS platform OmniPoint, aiming to streamline last-mile and fulfillment solutions for consumers.
Related: OneRail solution targets inventory shrinkage in logistics
Bill and Lisa Catania founded Orlando, Florida-based OneRail in 2018, aiming to streamline the final mile of the delivery process. The company’s network connects shippers with 12 million drivers, OneRail said.
In addition to Aliment Capital, investors in the Series C round include eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures.
Citing a report from consultancy McKinsey and Co., OneRail said the Series C funding comes amid a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline the past two years.
“Last-mile delivery continues to be a significant hurdle for many companies, with nearly 90% of retailers facing challenges due to technical issues and high costs,” Bill Catania wrote in a blog on Friday.
In June, OneRail acquired Vancouver, British Columbia-based Orderbot, an enterprise inventory and distributed order management solution provider. The acquisition helps OneRail integrate inventory and order management capabilities to enable store-shelf-to-doorstep visibility, the company said.
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