We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Flexport lands enormous $935 million backing for freight forwarding platform

Flexport lands enormous $935 million backing for freight forwarding platform

Nine-year-old tech startup gains backing from big names Andreessen Horowitz, SoftBank, Shopify, and others.

flexport Screen Shot 2022-02-07 at 4.41.08 PM.png
February 7, 2022
Ben Ames
No Comments

Freight forwarder and customs broker Flexport International LLC says it will expand its logistics technology platform into new geographies and markets while partnering with new companies in that space, thanks to a whopping venture capital round of $935 million announced today.

The enormous funding round comes as pandemic surges and port slowdowns have put rising pressure on international freight flows, inspiring investors to place bets on logistics technology startups that promise possible solutions. Recent examples in the first five weeks of 2022 alone include $200 million for the freight technology company Loadsmart, $65 million for Vecna Robotics, $78 million for truck cargo payments platform BasicBlock Inc., $335 million for warehouse robotics startup Exotec, and $420 million for logistics visibility platform vendor project44.

The backing for San Francisco’s nine-year old startup Flexport, however, is nearly as much as all those investments put together. The “series E” investment round was led by Andreessen Horowitz and MSD Partners with a strategic investment from Shopify, as well as participation from existing partners DST Global, Founders Fund, SoftBank Vision Fund 1, and other investors including Kevin Kwok.

Following the move, 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 flood of money arrives after Flexport in recent years launched a trade advisory service for operations in tariff mitigation, operational risk, and trade compliance; opened warehouse space in Vietnam to help its clients duck U.S.-China trade barrages; and built an intelligent cargo matching platform for ocean freight consolidation services.

According to Flexport’s new investors, they opened their checkbooks for this deal after seeing the onset of Covid turn the global supply chain norm on its head, producing impacts like huge increases in shipping costs, lead times, and demand for cargo space, all while freight capacity struggles to keep up.

In a blog post about the move, the investment firm Andreessen Horowitz says it sees Flexport’s “next-gen” freight forwarding technology as a cure, thanks to its ability to produce benefits like precise cargo visibility, accurate arrival time estimates, and more fully-filled containers.

Flexport CEO Ryan Petersen echoed those themes in his own statement, saying: “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 recognizes the need for a tech-enabled logistics ecosystem that has the visibility and resilience to handle unexpected challenges of any scale.”

Freight Forwarders Customs Processing
KEYWORDS Flexport
  • Related Articles

    Loadsmart lands $200 million backing for freight technology platform

    Tech startup CloudTrucks lands $115 million backing for "business in a box" platform

    FloorFound lands $10.5 million backing for its large-item returns network

Benames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

Recent Articles by Ben Ames

Maersk deploys indoor drones for warehouse inventory counts

New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Jungheinrich buys Indiana warehouse automation vendor for $375 million

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Fred Smith is not worried about Amazon

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing