NEW YORK — Transfix, which develops logistics software for the trucking industry, has closed a $42 million Series C round of funding, led by venture capital firm New Enterprise Associates (NEA). Additional investors in the round include Canvas Ventures, Lerer Hippeau Ventures and other strategic investors. Transfix plans to use the funds to further develop its software platform and grow its technology and enterprise sales teams.
Transfix helps its customers, carriers, and drivers by eliminating waste in the supply chain through mobile technology, machine learning, and big data analytics. The platform enables shippers to amplify their existing carrier relationships with Transfix’s contracted carriers, and provides real-time visibility, exception management, and data analytics to facilitate informed decision making. This speeds delivery of goods while lowering costs throughout the supply chain.
“Long haul trucking and logistics make up almost one percent of the U.S. economy,” said Scott Sandell, managing general partner, NEA. “Trucking as a job classification outnumbers any other in the country. At the same time, this industry remains incredibly fragmented and opaque, and has not yet enjoyed the benefits of technology and innovation like most other industries. Transfix is poised to change all that, providing better transparency and visibility to shippers and truckers alike, and in the process improving efficiency overall. The Transfix team brings a unique combination of deep domain expertise and technical sophistication. Not surprisingly, they have met with a tremendous reception in the marketplace, working with marquis customers as well as tens of thousands of truckers.”
Transfix is currently working with many of the world’s largest retailers, consumer-packaged goods (CPG) brands and manufacturers to streamline and optimize full truck load shipment logistics. This complete view of truckload freight allows for lower costs for both shippers and carriers and dramatically fewer miles driven empty. In turn, it increases the availability of goods, with less impact on infrastructure and the environment.
Launched in 2013, Transfix has raised more than $78.5 million to date.
“There is a lot of misinformation in the freight industry which creates pressure, impossible – and sometimes dangerous – deadlines, misdeliveries, and ultimately the failure to satisfy customers. It’s a problem that’s ecosystem-wide, not just limited to a single part or parcel. That’s why we’re focused on providing a comprehensive solution for the supply chain,” said Drew McElroy, founder and CEO, Transfix. “We’re thankful to our partners for enabling us to provide our customers with opportunities to uncover hard and soft cost savings and new revenue opportunities for shippers and carriers alike.”
Earlier this year, Transfix launched the first automated, online load booking capabilities for carriers.
“The supply chain has so many variables, making it an exceptionally difficult – and exciting – dilemma to solve,” said Jonathan Salama, co-founder and chief technology officer, Transfix. “Automation and machine-learning are at the core of our solution. We look forward to expanding our capabilities and resources with the best and brightest software engineers to offer the most advanced logistics technology available.”