Shipping and logistics remain profitable tech ventures. At least, that appears to be the case with the closing of MyCarrier's Series B today. A startup with a freight shipping platform for small- and mid-sized shippers, MyCarrier raised $22 million in a venture round led by NewRoad Capital with participation from Greycroft and Lerer Hippeau.
CEO Michael Bookout indicated that the new cash will go toward expanding and accelerating MyCarrier's platform offerings and investing in its product, R&D and go-to-market teams. "From the beginning, our vision and approach were based on strong partnering, working hand-in-hand with carrier partners and customers to streamline the carrier and shipper experience to create exceptional business and customer outcomes," he said in a press release.
MyCarrier was co-founded in 2016 by freight and freight tech veterans Bookout and Chris Scheid, who previously worked at GlobalTranz, a logistics company based in Phoenix, Arizona. That's where they had the idea for MyCarrier -- a platform to connect smaller shippers to "less than truckload" (LTL) carriers (i.e. carriers that don't require a full truckload), return automated quotes based on users' shipping needs and deliver dynamic insurance and payments.
Image Credits: MyCarrier
MyCarrier gives customers the ability to quote, ship and track a shipment, connecting them with carriers that meet specific shipping needs. Using the platform, clients can manage their shipping schedule and compare shipment rates and transit times.
MyCarrier expects to process more than two million shipments in 2022 for more than 5,000 business-to-business software-as-a-service customers, driving the company's annual recurring revenue run rate to more than $11 million next month (August's total was $9.4 million). Current clients include Lucas Oil, IPC Global, U-Haul and Malouf Home.
"[W]e've been able to break down technology fears previously seen throughout the small- and medium-sized business market," Scheid said in a press release. "Today, we are providing the little guy's visibility into their supply chains, once only available to large enterprises. And it's absolutely needed given global supply chain disruptions and chaos."
As they set their sights on the horizon, Bookout and Scheid say they plan to expand MyCarrier beyond LTL and full truckload shipping to other, multimodal forms of shipping (think air, rail and ocean). Also on the roadmap are new freight audit and pay capabilities, deeper enterprise resource management integrations and developing a set of data intelligence tools for carriers and shippers.
"Our vision and approach align perfectly with NewRoad Capital, enabling us to leverage their operating expertise and network as we continue to expand our platform," Scheid continued.
To date, Scottsdale, Arizona-based MyCarrier has raised more than $36 million in venture capital.