NEW YORK, July 25, 2016 /PRNewswire/ -- Transfix, the leading provider of on-demand trucking that some have called "Uber for trucks," today announced $22 million in Series B funding led by new investor New Enterprise Associates (NEA). NY-based Transfix has created an online marketplace for the trucking and logistics industry, providing a platform that matches shipments with available trucks. Several existing investors also participated in the round, including Canvas Ventures, Lerer Hippeau Ventures, and Corigin Ventures. The new funding will go toward continued investment in technology and expanded product offerings to meet customer demand.
Transfix is focused on the full truckload (FTL) market, which is a $420 billion market each year in the U.S. alone. Transfix reduces the amount of "empty miles" driven by truckers with algorithms that match freight with trucks based on location and in real-time. Its solution yields significant savings for shippers and increased pay for truck drivers.
The company also gives free technology to its users in the form of tools catered specifically to them. Drivers get a mobile app (iOS & Android) that allows them to easily communicate load details and other features. Trucking companies get a free FMS (Fleet Management System) to manage their drivers and streamline their business. Shippers get a dashboard with real time shipment locations, alerts, and customized analytics. Transfix has created a marketplace that provides considerable value for drivers, carriers, and shippers.
"We are extremely excited about our partnership with NEA," said Drew McElroy, co-founder and CEO of Transfix. "Not only will Scott Sandell and the rest of the NEA team add great value, the additional capital will allow us to capitalize on the tremendous demand for our product. We've begun to dramatically change a massive industry, and we're only just getting started. With the help of our customers, carriers, and drivers, we are leveraging technology and data to do some really exciting things."
"Smartphone-based freight brokering is creating new and powerful ways of connecting shippers to carriers, driving a greater degree of transparency, facilitating on-demand logistics, and benefiting both the less-than-truckload and full-truck load markets," said Wallace Lau, team leader and industry principal at Frost & Sullivan. This analyst firm estimates the smartphone-based freight-brokering market in North America will grow from ~$125 million in 2015 to ~$26.4 billion by 2025.
"Transfix has differentiated themselves in a space, which is expected to grow more than 20 percent in the next decade, by using a tech-first approach to the full truckload market," said Scott Sandell, managing general partner, NEA. "Seventy percent of the trucking industry relies on brokers to help match customers to carriers, and Transfix's technology brings much-needed innovation to the market, as well as efficiency not previously available. Drew's family history in the trucking logistics industry has made him a knowledgeable entrepreneur in this space."
Scott Sandell will be joining the Transfix board of directors.
Transfix is an award-winning on-demand shipping marketplace for manufacturers and distributors. A recognized market leader in mobile-based brokerage, Transfix transports full truckload (FTL) freight throughout the continental United States and Canada.
Launched in August 2013, Transfix has raised $35.8M in capital and is backed by top VC firms in NYC and San Francisco, including Canvas, Lerer Hippeau Ventures, Founder Collective and Bowery Capital. Transfix is headquartered in New York City.
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With nearly $17 billion in cumulative committed capital since inception, NEA invests in technology and healthcare companies at all stages in a company's lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 200 portfolio company IPOs and more than 320 acquisitions. www.nea.com.