Convoy, the nation’s leading digital freight network, raised $260 million in new funding, led by Baillie Gifford and funds and accounts advised by T. Rowe Price Associates, Inc., as well as a $100 million venture debt investment from Hercules Capital, Inc. (NYSE: HTGC). Additionally, J.P. Morgan provided the company with a new $150 million line of credit. This additional funding will enable Convoy to accelerate the development of its efficiency-focused technologies in response to the nation’s $800 billion trucking industry’s surging customer demand. Convoy is now valued at $3.8 billion following the most recent equity investment.
“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. That is Convoy’s mission.”
said Dan Lewis, Co-Founder and CEO of Convoy.
“When we first invested in 2019, the trucking industry was ripe for disruption and we were impressed with Convoy’s vision and early success in driving the future of freight, since then, Convoy has built a world-class management team, including seasoned executives who’ve successfully led digital transformations in other industries and further enhanced its technology platform. They’ve been able to strengthen their relationships with shippers, expand their network of truckers, and deliver strong business growth. We’re looking forward to supporting the Convoy team as they grow and scale the business in the years ahead to further transform the U.S. trucking industry.”
said Gary Robinson, Investment Manager at Baillie Gifford.
Convoy is unique in that it activates small trucking companies, which are the lifeblood of the United States’ freight industry. Truckers benefit significantly from Convoy’s easy access to desirable freight, competitive and market-based pricing, universal trailer pool, favorable payment terms, and other ancillary benefits that aim to level the playing field between them and their frequently larger competitors. Convoy remains at the cutting edge of innovation with products and programs such as Convoy Go, Convoy for Brokers, Dynamic Backup, and Guaranteed Primary.
“Convoy keeps expanding via industry-leading technology and an innovative service offering by incorporating load planning and optimization routines targeting both the spot and contract truckload markets, Convoy continues to increase operating efficiencies and drive out costs helping it create more sustainable supply chains for customers.”
said Evan Armstrong, President of Armstrong & Associates.
Convoy pioneered a new approach to trucking in 2015, by digitally connecting shippers and carriers to the Convoy platform and utilizing machine learning models to match carriers to loads more efficiently. Today, through its intuitive carrier-facing smartphone app and industry-leading technology platform, Convoy connects shippers and freight brokers to a nationwide network of 400,000 trucks. As a result, shippers can move goods more efficiently and truckers can earn more while reducing unnecessary carbon emissions.
Convoy’s technology reduces environmental waste by more efficiently bundling and matching shipments to trucks, lowering empty miles from 35% to 17%. If the industry as a whole achieved the same efficiency gains as Convoy on its bundled shipments, CO2 emissions from empty miles would be reduced from 87 million to 47 million metric tons per year.
Along with Baillie Gifford, the T. Rowe Price funds, and a number of other existing shareholders, Park West and a number of other new investors joined Convoy’s world-class investor base, which already includes Generation Investment Management, Fidelity, Durable Capital Partners, Capital G, Lone Pine Capital, Greylock Partners, Y Combinator, Bill Gates, Jeff Bezos, Salesforce CEO Marc Benioff, Code.org founders Hadi and Ali Partovi, and U2 For Convoy’s Series E equity financing, JP Morgan Chase LLC acted as sole arranger and placement agent.