June 27, 2023

Investors continue to pump funding into FreightTech


E-commerce platform Cart.com has achieved unicorn status following a $60 million Series C round of funding to push its valuation to $1.2 billion.

Meanwhile, global supply chain-focused startups Nuvocargo and CargoBot recently secured $36.5 million and $6 million in funding, respectively.

While the venture capital market has never been worse for some parts of the tech sector, companies focused on logistics and moving freight continue to see investment infusions.

“Raising capital for a startup can indeed be a challenging endeavor, especially considering the fluctuations in the venture capital market,” Fernando Correa, Cargobot’s co-founder and CEO, told FreightWaves. “We deeply appreciate the support of our existing and new investors, who have placed their trust in our vision and potential.”

Cart.com, a commerce and logistics technology provider, has brought in $60 million in a capital raise, according to a news release.

The company said it will use the funds to meet increased demand from B2B and enterprise clients, while accelerating product development and international expansion. 

The Series C round included participation from B. Riley Venture Capital, Kingfisher Investment Advisors, Snowflake Ventures, Prosperity7 Ventures, Legacy Knight and other strategic investors.

“As a leading commerce software and services provider, we are focused on enabling our customers to compete and win across every channel through digital tools and digitally driven logistics capabilities,” Omair Tariq, company co-founder and CEO, said in a statement. “We will continue to invest in our industry-leading commerce data capabilities, which are built to address the specific inventory, channel and supply chain challenges facing enterprises.”

With the latest fund raise, Cart.com enters unicorn territory, a startup company with a value of more than $1 billion.

Founded in 2020, Cart.com has almost 6,000 brands on its platform. Last year, its software powered over $5 billion in gross merchandise value, with 140 million product listings, $10 trillion in product ads and 11 billion in marketplace repricing events, the company said.

“Cart.com is driving the evolution of commerce and unlocking business value through unified data across the entire value chain,” Harsha Kapre, Snowflake Ventures’ industry principal for retail data and technology, said in a statement.

Cart.com has almost 6,000 brands on its platform and powered over $5 billion in gross merchandise value last year. (Photo: Jim Allen/FreightWaves)

Nuvocargo raises $36.5M, valuation increases to $250M

Digital logistics platform Nuvocargo announced it has secured $36.5 million in a Series B funding round led by QED Investors.

New York-based Nuvocargo said it will use the funds to expand service to all major U.S.-Mexico border crossings, having previously only focused on Laredo, Texas.

With the expansion, Nuvocargo aims to capitalize on growing demand from shippers and carriers in the U.S.-Mexico cross-border region, officials said.

“We are bullish on the nearshoring opportunity and have already seen increased demand for

services specialized in the U.S.-Mexico trade lane,” Deepak Chhugani, Nuvocargo’s founder and CEO, said in a statement. “We expect this trend to continue growing as Mexico settles into the top spot for U.S. trading partners.”

In addition to investments from QED, the Series B round included participation from all of Nuvocargo’s existing investors.

The latest round increased Nuvocargo’s valuation to more than $250 million and brings its total funding to $75 million to date.

“QED doubled down on Nuvocargo by leading this round because they are on-track to becoming one of the leading startups to spearhead the nearshoring trend to Mexico from China and Asia,” Lauren Morton, partner at QED, said in a statement.

Nuvocargo will use funds from its Series B capital raise to expand service to all major U.S.-Mexico border crossings. (Photo: Jim Allen/FreightWaves)

Cargobot lands $6M to help propel global growth

Miami-based Cargobot recently raised $6 million in a Series A funding round, which the company will use to expand its products and solution offerings for shippers and carriers.

“Our platform offers comprehensive visibility and intuitive technology, enabling real-time monitoring of freight operations,” Correa said. “With a focus on advanced technology and user-friendly solutions, we strive to make freight transportation easier for shippers and carriers alike.”

Founded in 2016, Cargobot is an international digital freight company that connects shippers and carriers via its data-driven platform. 

Miami-based Cargobot currently partners with over 20,000 carrier companies on its platform. (Photo: Jim Allen/FreightWaves)

The Series A round was led by BPBI, with continued participation from majority investor Total Management 2 Inc.

With the funding, Cargobot plans to further develop its current business units, including Cargobot Pool and Cargobot SaaS, aiming to provide more solutions for the freight industry, Correa said.

“We currently partner with over 20,000 carrier companies,” he said. “Additionally, through API integrations, we have access to an extensive pool of over 500,000 carriers, further expanding our network and enhancing our ability to meet the diverse needs of our customers.”

Correa said the freight economy is always changing.

“The current state of the freight economy is dynamic and influenced by various factors, including global trade trends, supply chain disruptions and economic conditions,” he said. “We leverage technology to optimize freight transportation processes, enhance visibility, and improve overall efficiency, helping our customers navigate the freight economy more effectively.”

Correa also said Cargobot sees a lot of cross-border opportunities in U.S.-Mexico trade.

“When it comes to cross-border opportunities between the U.S. and Mexico, Cargobot recognizes the immense potential for trade and transportation in this region,” he said. “We understand the importance of seamless connectivity between shippers and carriers in both countries.”

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