[ad_1]
The weak freight market has taken its toll on FreightTech valuations.
FreightWaves late Monday obtained a release showing digital freight marketplace Transfix is looking to raise a $50 million Series F at a $376 million valuation, a 60% reduction from the $940 million the New York City-based company was valued at in its last funding round in March 2020. A source attributed the valuation drop to “largely market forces.”
Transfix reportedly has secured $30 million in financing from New Enterprise Associates (NEA) and G-Squared and is shopping for investors to contribute the remaining $20 million.
A Transfix spokesperson responded to FreightWaves’ request for comment, saying, “We do not comment on rumors or speculation regarding our business.”
2nd attempt
FreightWaves reported in October that after announcing the company would not go public through a special purpose acquisition company combination with G-Squared, Transfix said it would be working with NEA and G-Squared on private financing.
The company had hoped to gain a $1.1 billion valuation through the public offering but pointed to market conditions for the change in direction.
Although, according to the MerQube FreightWaves Supply Chain Tech Index, which tracks the share price of FreightTech service providers, FreightTech service providers who are public have seen a 38.9% increase in price since September 2022 coinciding with the S&P 500 up 22.98%.
![](https://www.freightwaves.com/wp-content/uploads/2023/07/11/image-8-1200x466.png)
In June 2022, when the business combination agreement was filed with the U.S. Securities and Exchange Commission, a statement that is no longer available on Transfix’s website said the company would be looking to close a $50 million round with G-Squared, with $50 million in capital committed by the investment group even if the SPAC deal did not close.
It appears that deal is still on the table. The source told FreightWaves that Transfix hopes to close the funding round in September.
Transfix announced in March that Lily Shen, its chief executive officer, was stepping down and co-founder and Chief Technology Officer Jonathan Salama would take over the role.
Watch now: Transforming Complexity: Leveraging Data and AI for Optimal Global Supply Chains with Halliburton
Read more
Transfix announces Shen stepping down, appoints new CEO
TrueRate+ is Transfix’s attempt to battle broken trucking contracts
[ad_2]
Source link