The global trucking industry generated a revenue of about $800 billion in 2018. However, presently there is also a severe driver shortage of over 60,000 truckers in the sector. These conditions generate incentives for higher efficiency in this massive industry. Digital freight companies are increasingly working to bridge the gap created by driver shortage. Investors are increasingly investing in such companies seeing their future growth potential.
Convoy, a US based digital freight broker company that connects truckers and shippers, reportedly announced that it raised over $400 million in a Series D investment round which was led by Generation Investment Management and the company’s existing investor T. Rowe Price Associates.
Additionally, asset management company Baillie Gifford, Durable Capital Partners, Fidelity as well as investors from Series C round, Lone Pine Capital and CapitalG also participated in the investment round.
Chief Executive Officer of Convoy, Dan Lewis stated that the company plans to utilize the raised investment to increase its talent pool by hiring more product engineers as well as other staff as it aims to more than doubling its head count over the next few years.
Moreover, the company also plans to expand programs like its trailer-sharing service that enables carriers to hitch up prefilled trailers and then deliver them at facilities without waiting for the cargo to be unloaded.
Convoy further plans to expand the integration of company features like real-time pricing data, with software systems used by shippers to manage transportation.
The post-money valuation of the company has reached $2.75 billion following the latest round of funding. Convoy has raised more than $668 million since it was founded in 2015, and it currently has more than 800 employees.
Convoy does not disclose its revenue numbers or even share details of the number of loads it is carries weekly or yearly. However, industry giants like Unilever, Proctor & Gamble and Anheuser-Busch are some of the company’s customers.
Previously in September 2018, the company had raised $185 million in a Series C funding round.