US-based trucking services marketplace Convoy secured $260m in debt and series E equity financing yesterday from investors including internet and technology group Alphabet’s growth equity arm, CapitalG.
Baillie Gifford and T Rowe Price co-led the equity portion of the round, which also featured investment and financial services firm Fidelity. It valued the company at $3.8bn.
Park West, Durable Capital Partners, Generation Investment Management, Lone Pine Capital, Greylock Partners, Y Combinator and private investors Jeff Bezos, Bill Gates, Marc Benioff, Hadi, Ali Partovi, Bono and The Edge filled out the equity investors. Hercules Capital provided $100m of debt capital while JP Morgan separately provided a $150 line of credit.
Founded in 2015, Convoy operates an online platform that connects shippers with logistics service providers while using machine learning and data analytics to determine the most efficient routes. The proceeds from the series E round will be used to strengthen the platform.
CapitalG and Fidelity also participated in Convoy’s $400m series D round in 2019, which was co-led by Generation Investment Management and T Rowe Price and filled out by Durable Capital Partners, Baillie Gifford and Lone Pine Capital.
CapitalG had previously led a $185m series C round the previous year with backing from Lone Pine Capital and T Rowe Price.
Convoy’s $62m series B round was led by Y Combinator’s Continuity Fund in 2017 and included Greylock Partners, Mosaic Ventures, Cascade Investment, Bezos Expeditions and assorted angel investors. Greylock had previously led its $16m series A round in 2016 with assorted individual and existing investors.
Dan Lewis, co-founder and CEO of Convoy, said: “Every day millions of truck drivers get in their cabs and do the work that keeps our economy moving while ensuring people get what they need.
“The pandemic highlighted how important trucking is and how volatile and inefficient this industry can be. We know that we can do better by using modern technology and algorithms to help orchestrate freight logistics, improve service, reduce waste and help drivers.”
Photo courtesy of Convoy, Inc.
