Flexport secures funding as it looks to expansion

Flexport's Ryan Petersen

Flexport has secured $935m in funding to be used to “accelerate development of its technology platform” and expand.

The freight forwarder said the money would allow it to add new locations and markets, continue building a “logistics tech ecosystem” and invest and partner with new companies in the industry.

It added that the latest round of funding brings its approximate market value [post money] to more than $8bn.

Flexport chief executive Ryan Petersen said: “The global pandemic and the pressure it put on global supply chains has made the transportation of goods — something many people took for granted — a daily pain point.

“This investment signals that the market recognises the need for a tech-enabled logistics ecosystem that has the visibility and resilience to handle unexpected challenges of any scale.”

David George, general partner at Andreessen Horowitz, added: “Global trade is facing historic challenges, which demand innovative approaches that address both the current difficulties and more systemic issues.

“Flexport’s platform, business model, and data-driven insights together uniquely position the company to continue making a substantial impact on this multi-trillion dollar industry.”

Bob Swan, growth operating partner at Andreessen Horowitz, will join Flexport’s board of directors, and representatives from Shopify and MSD Partners will join as board observers.

The company expects the financing to close in the first quarter subject to customary closing conditions, including the receipt of regulatory approvals.

Last year, Flexport announced its new “Partner Network” which it described as a “ecosystem of logistics service providers”.

Meanwhile, in an interview with Forbes Magazine, it was revealed that the company last year turned a profit for the first time, posting net income of $37m since it was launched in 2015.

The report describes the investors that put money into the company in the latest fund raising round as “powerful”, “prolific” and “prominent”.

Forbes also highlights the industry’s love/hate relationship with Petersen. Many see him as running an innovative company and helping to raise the industry’s profile to the general public.

Others are frustrated by his mainstream and social media presence and say his company isn’t doing anything that the many in the industry aren’t already doing, it is simply repackaging existing ways of working.

 

Flexport secures $1bn investment for infrastructure and technology

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Damian Brett

Damian Brett
I have been writing about the freight and logistics industry since 2007 when I joined International Freighting Weekly to cover the shipping sector.After a stint in PR, I have gone on to work for Containerisation International and Lloyds List - where I was editor of container shipping - before joining Air Cargo News in 2015.Contact me on [email protected]