It’s been a big week for B2B startups on the venture capital front, with freight forwarding company Flexport emerging as the latest winner in the space.
Reports in TechCrunch recently said Flexport raised an impressive $110 million last month, confirming news that broke last week. The funding raises the company’s valuation to $910 million, reports said, with funding provided by DST Global. In addition, Founders Fund, Susa Ventures and existing backers also participated in the Series C round, the TechCrunch reports added.
Flexport provides freight and logistics services, supporting companies whose supply chains span the globe. According to the publication, the company facilitates the shipping of 7,000 shipping containers a month, as well as air cargo, trucking, insurance and customs brokerage services.
With new funding in hand, Flexport said it plans to introduce a trade financing solution into its offering, using its shipping data to underwrite funding and front loans to its customers, according to TechCrunch.
“We have all the data to assess creditworthiness,” said Flexport CEO Ryan Petersen in an interview with the publication. “A traditional bank might take a long time to get the money. It might take a month or two. But, business happens really fast. We can lend to those customers, whether it’s Wells Fargo’s or someone else’s money.”
According to reports, Flexport is already working with Wells Fargo to make its trade finance offering a reality.
“While Flexport already had a banking and credit relationship with Wells Fargo, the strategic capital group is excited to take the next step and also become an equity investor in this rapidly growing business with an exceptional leadership,” said Wells Fargo strategic capital managing director Matt Raubacher, according to the TechCrunch report.
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