Suppy chain visibility firm Overhaul announced Tuesday it has closed on $73 million in late-stage funding to finance its recent acquisition of security services company SensiGuard and to grow its risk management solutions for in-transit goods.
Related: Overhaul acquires supply chain security firm SensiGuard
The capital comes in two parts: $38 million in equity from lead investor Edison Partners with participation from eGateway Capital, StepStone Group and TRM Ventures and $35 million in non-dilutive debt from Stifel Bank.
Austin, Texas-headquartered Overhaul announced in February that it had acquired SensiGuard from Sensitech, a Boston-based global solutions provider for supply chain risks, as well as temperature-control monitoring of shipments.
Overhaul founder and CEO Barry Conlon told FreightWaves that with SensiGuard’s reach in Brazil, Mexico and the Czech Republic, the company would focus on merging its U.S. and European operations with SensiGuard’s offices, uniting more than 650 employees.
This new capital will help fuel those endeavors, including funding the product development that will come out of the merged companies.
| Funding details | Overhaul |
|---|---|
| Funding amount | $73 million |
| Funding round | Late stage (equity and debt) |
| Lead investors | Edison Partners (equity) and Stifel Bank (debt) |
| Secondary investors | eGateway Capital, StepStone Group and TRM Ventures |
| Business goals for the round | Acquire SensiGuard, expand operations across global offices, develop more solutions |
| Total funding | $138 million* |
“Real-time visibility and responsive risk management gives Overhaul a distinct advantage among supply chain SaaS providers. We’re extremely impressed with Barry and the executive team’s ability to deliver innovative enterprise-class solutions that adapt to complex cargo needs while showing discipline in capital deployment,” said Ryan Ziegler, general partner at Edison Partners.
Prior to acquiring SensiGuard, Overhaul had received numerous accolades, including recognition on Deloitte’s Technology Fast 500 and the Gartner Magic Quadrant for Real-Time Transportation Visibility Platforms, for its focus on bringing visibility to high-risk freight.
With SensiGuard in hand, Conlon obtains technology he once sold to the company and a book of customers looking to de-risk their shipments of perishable goods in markets like food service and life science.
Related: Cargo thefts spike 15% across US, Canada in 2022
“Our U.S. customers receive exponential savings of up to 60-65% reduction in in-transit cargo insurance costs, and we expect even higher savings in other regions of the world,” said David Broe, chief operating officer at Overhaul.
The company said in 2022 alone it recovered $16.5 million in cargo value for its customers and mitigated the loss of more than $226 million in cargo value through real-time interventions and recoveries.
Conlon believes that with the acquisition and larger global presence, Overhaul will continue to scale, with eyes on tracking more than $1 trillion in cargo in 2023.
“Our competitors are stringing together solutions through API calls and have to rely on major integration project planning to get ingrained in the customers’ infrastructure before they can start showing value. We’ve heard even up to 12 months before data can accurately portray visibility, let alone any risk protocols [that come with] partner programming,” said Conlon.
“Overhaul provides a very quick time to value (average of just 14 days), making it a much leaner lift than a TMS or SAP integration,” he continued. “Our platform can ingest complex data sets with zero need for new architecture or data structure.”
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