Routing and dispatching technology provider Wise Systems announced Wednesday that after 300% year-over-year growth over the past two years, the company has raised $50 million in its recent Series C round led by Tiger Global Management with participation from Section 32, Valo Ventures, Gradient Ventures and Prologis Ventures.
The company plans to use the additional capital to expedite its product development supporting last-mile delivery operations, along with adding members to the team to expand its footprint as these delivery technologies become exponentially more valuable across the globe.
“The forces driving adoption of last-mile technology — including the need to address the growth of e-commerce, increasing customer demands and driver satisfaction — are being compounded by the coming challenges of the electrification of fleets,” said Mona ElNaggar, a partner at Valo Ventures. “Wise Systems is well positioned to meet those needs, and we are thrilled to continue to support their vision and team.”
This funding news comes three months after announcing Wise Systems had partnered with Mitsubishi Fuso Truck and Bus Corp. (MFTBC), a division of Daimler Trucks Asia.
In this partnership, the company’s product suite is available as part of MFTBC’s aftermarket solutions for at least 170 light-, medium- and heavy-duty trucks, which became available in these vehicles at the beginning of this month.
In an interview with FreightWaves on the partnership, co-founder and CEO Chazz Sims explained that Wise Systems’ current dispatching and route automation software operates around Level 3 autonomy, working toward Level 4, meaning most of its exception-management situations are handled autonomously.
Wise Systems has also made its technology available to fleets within the SAP App Store, announced in May.
In a recent survey done by the IBM Institute for Business Value, these aftermarket technologies will be a table stakes service offering to fleet customers, according to 64% of truck manufacturing executives.
By 2030, these executives expect $465 billion of annual revenue will likely switch from sales to these services to help with fleet management tools, automation, data security, privacy and enhanced driver features.
|Funding details:||Wise Systems|
|Funding amount||$50 million|
|Funding round||Series C|
|Lead investor||Tiger Global Management|
|Secondary investors||Section 32, Valo Ventures, Gradient Ventures and Prologis Ventures|
|Business goals for the round||Accelerate product development and expand markets|
|Total funding||$73.58 million|
Wise Systems has found that since providing these automation services to its customers, many have seen fleet utilization up 20%, leading to 80% reduction in late deliveries for its customers like Anheuser-Busch, Lyft and fleets in industries including food, beverage, parcel, courier and field services.
“The last-mile industry has undergone radical transformation over the last five years, driven by a combination of technology, customer appetite and disruptive newcomers like Wise Systems,” said Sims.
“With this latest round of funding, we’re excited to invest further in our business and continue to push the boundaries of innovation and customer experience, embedding machine learning and AI in service of automation, efficiency and carbon reduction,” he said.