Digital logistics provider Flock Freight announced Wednesday that it has raised $215 million in Series D financing led by SoftBank Vision Fund 2 with participation from new investors Susquehanna Private Equity Investments LLLP and Eden Global Partners and its existing investors, SignalFire, GLP Capital Partners and GV, formerly Google Ventures.
The company’s last raise took place in November for $113.5 million, valuing the company at $463.5 million.
Almost a year later, with 325% year-to-date revenue growth, the company’s Series D has landed it a $1.3 billion valuation, adding to the growing list of unicorns dedicated to producing sustainable supply chains for customers.
“Flock Freight is the only company that offers guaranteed hubless shared truckload service, and this additional investment adds more fuel to our sustained triple-digit growth,” said Oren Zaslansky, CEO and founder of Flock Freight.
“Our continued partnership with SoftBank, as well as our new relationship with Susquehanna and Eden, enable us to keep leading the freight industry’s change towards filling trucks at scale without sacrificing service performance,” he said.
Unlike digital freight brokers of its kind, Flock Freight’s focus is to use its patent-pending proprietary technology to pool less-than-truckload and partial-full truck shipments together to maximize available space on a truck and avoid stops at terminals, which leads to longer transit times and increased risks of damaged or lost product.
The company believes that by implementing shared truckload technology, it can complete the second half of its mission statement — “move freight in a way that treats the environment and drivers with care.”
|Funding details:||Flock Freight|
|Funding amount||$215 million|
|Funding round||Series D|
|Lead investors||SoftBank Vision Fund 2|
|Secondary investors||New: Susquehanna Private Equity Investments LLLP and Eden Global PartnersExisting: SignalFire, GLP Capital Partners and GV (formerly Google Ventures)|
|Business goals for the round||Invest in current patent-pending technology, expand sales and operations teams, and open Chicago office|
|Total funding||$399 million|
|Post-money valuation||$1.3 billion|
In August 2020, Flock Freight became the first shipping company to gain B Corporation status to demonstrate its belief that with the pooled freight system, the transportation industry can begin to offset the 34% of carbon dioxide emissions it puts into the atmosphere every year.
“Flock Freight’s dedication to transforming the freight industry and its impact on the environment through its shared truckload solution is a game-changer. Flock Freight’s commitment to supporting its employees, community and the environment perfectly aligns with the B Corp’s mission to prioritize both purpose and profit,” said Pooja Dindigal, senior associate of business development at B Lab, the nonprofit that grants companies B Corporation status.
Flock Freight also partnered with Carbonfund.org to become the only transportation service provider to offer carbon-neutral shipping at point of sale without asking customers to eat the cost.
Since its inception, the company has eliminated 15,000 tons of carbon dioxide emissions, with a goal to reach 20,000 tons by 2021.
Flock Freight plans to use its new funds to continue investing in its algorithmic freight pooling technology, including investing in sales and operations talent along with opening its new Chicago office later this year.
“We believe Flock Freight’s technology has demonstrated the unprecedented ability to pool shipments in real time, maximize trailer utilization and reduce waste — while delivering high-service quality. We are pleased to continue our support of Oren and the Flock Freight team as they aim to reinvent freight shipping,” said Andrew Straub, investment director at SoftBank Investment Advisers.