Trucking operations software company CloudTrucks on Tuesday (Nov. 30) announced it wrapped up a Series B fundraising round that brought in $115 million, bringing the company’s valuation to $850 million, according to a Forbes report.
Tiger Global and Menlo Ventures led the latest CloudTrucks funding round, while freight forwarding platform Flexport also participated, as did previous investors Khosla Ventures, Caffeinated Capital and David Sacks’ Craft Ventures. The company will use the money to enhance its suite of product features.
“We believe that the future of the trucking industry lies in the hands of the trucking entrepreneurs, and with this new investment, the largest ever dedicated to building business management solutions for trucking entrepreneurs, we intend to help build that future,” said CloudTrucks CEO Tobenna Arodiogbu in his blog post announcing the investment.
The CloudTrucks app includes a database of potential delivery jobs, a payments system for drivers to get paid right away and an option to let CloudTrucks take care of insurance, making the company a one-stop shop for drivers to manage their businesses in a space that’s been dominated by decentralization.
CloudTrucks takes 6% to 15% of a driver’s earnings, depending how many of its services the driver uses. Arodiogbu says the company has seen a 9.5-fold revenue increase since its last fundraising effort a year ago.
Menlo Ventures partner Steve Sloane told Forbes its investment came as part of a fund which targets companies with $5 million to $15 million in annual recurring revenue.
A rebound in the trucking space during the onset of the COVID-19 pandemic, as more shoppers bought items from the comfort of their own homes rather than venturing out to their favorite stores, created new opportunities for drivers.
“One of the things that we really found out [last year] was how much the trucking industry matters to the U.S. economy,” Arodiogbu told PYMNTS in an interview.
The digitization of the trucking industry is helping independent truckers optimize their operations and improve cash flow, he said. CloudTrucks allows to coordinate where they travel in chunks of time and ensure they are maximizing revenue while moving their loads.