New Funding Values Digital Freight Firm Convoy at $3.8B

Convoy, a digital freight firm, has raised $260 million in new funding, bringing the value of the Seattle-based company to $3.8 billion, according to a Thursday (April 21) press release.

“This new funding will enable Convoy to accelerate the development of its efficiency-focused technologies in response to surging customer demand within the nation’s $800 billion trucking industry,” the release stated.

The capital came in the form of a $160 million Series E preferred equity and a $100 million venture-debt investment from Hercules Capital, according to the release. The Series E was led by Baillie Gifford, with funds and accounts advised by T. Rowe Price Associates, along with several new and returning investors.

Convoy also secured a $150 million line of credit from J.P. Morgan, the release stated.

“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,” said Convoy Co-Founder and CEO Dan Lewis in the release. “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.”

Convoy’s platform applies machine learning models to more efficiently match carriers to loads and connects shippers and freight brokers to a national network of 400,000 trucks through its platform and smartphone app, according to the release.

PYMNTS spoke to Grant Goodale, Convoy’s co-founder and chief technology officer, in 2020 about the shift to digital freight.

Read more: Convoy CTO On Trucking’s Great Digital Shift

“A lot of what we’ve seen from our shippers is a recognition that the new normal may look different from the old normal,” Goodale said at the time, underlining the importance of cooperation to ease the pain of market volatility. “They’re looking for partnerships to try and figure out how to be flexible in the face of changing demand from their customers and changing capabilities and timelines of their suppliers.”