Freight brokerage startup Arrive Logistics is cruising with a new infusion of more $10 million.
The Austin-based company received the funding from Lead Edge Capital, a New York-based venture capital firm focused on software, internet and technology-enabled services. Lead Edge Capital has previously backed Uber, Spotify and Alibaba Group.
Arrive Logistics declined to give a specific number for the funding round, other than to say it was more than $10 million.
Analysts say four-year-old Arrive Logistics is a rising star in the freight brokerage business, where its agents specialize in getting products and supplies from one place to another on behalf of thousands of clients.
The company has risen to 44th place among independent freight brokers in an industry with more than 15,000 competitors, according to Transport Topics' list of brokers.
Arrive Logistics said it generated $30 million in first-year sales and grew to $145 million in revenue in 2017. It says it is on track to surpass $330 million in 2018.
The company was founded with two angel investors and a team of 10 employees. It has since grown to 450 employees, including 323 at its South Austin headquarters and 121 in Chicago.
Arrive Logistics CEO Matt Pyatt said the company has grown without any outside investment, but now it is ready for an expansion push.
“We are ready to take out more capital to sustain our aggressive growth goals,” he said in a statement. “We took this capital raise process slowly to ensure we partnered with a firm whose values aligned with ours and we are confident Lead Edge is the best partner for us.”
The investment will be used for technology development and to expand Arrive Logistics’ workforce.
In the next year, the company said it plans to add more sales employees, grow its IT development staff, expand its corporate headquarters, move into new markets and add create new loyalty programs for carriers and customers.
“Arrive Logistics is proving to be a major player in the freight trucking space and we are looking forward to this partnership,” said Nimay Mehta, partner at Leading Edge Capital. “As a next-generation tech-enabled freight broker, Arrive continues to innovate and bring value to its shippers and carriers, while driving productivity gains for its employees.”
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