Technology-enabled trucking company CloudTrucks announced Tuesday it raised $115 million in series B funding led by Tiger Global with participation from Menlo Ventures and previous investors including Caffeinated Capital, Craft Ventures, Khosla Ventures, Abstract, BTV and Kindred Ventures.
The round also included investment from freight forwarder Flexport and angel investors Eric Wu, CEO of Opendoor, and Michael Ovtiz, former president of The Walt Disney Co.
The trucking company has raised a total of $141.6 million since January 2020 to assist CloudTrucks in its mission to make it easier for drivers to enter the industry. Since securing its series B raise, the company is valued at $850 million.
“We believe that this is a new era where investors are starting to really understand that owner-operators are the lifeblood of the trucking industry and are critical for the future of the industry,” said Tobenna Arodiogbu, co-founder and CEO of CloudTrucks. “This is the largest amount of funding that has been dedicated to building a complete business management solution for trucking entrepreneurs and we are excited to be leading the charge here.”
CloudTrucks gives drivers different ways to interact with the company through three programs — Virtual Carrier, Flex and CT Cash.
“We’re thrilled to fund the next generation of drivers as CloudTrucks lowers the barrier of entry to trucking,” said Steve Sloane, a partner at Menlo Ventures. “Menlo has long held an interest in companies streamlining the supply chain and believes CloudTrucks is uniquely positioned to set drivers up for success at a time when they’re more indispensable than ever. Tobenna knows how to deliver a standout solution and I’m confident that he will continue to bring state-of-the-art technology and digital experiences to one of the largest and most critical workforces in the U.S.”
Virtual Carrier allows drivers to work under CloudTrucks’ authority but according to their own work-life balance terms, leveraging the company’s administrative tools within its platform. The Flex program gives carriers the opportunity to work under their own authority but use CloudTrucks’ tools to find loads, optimize hours of service, run company analytics and manage payments.
CloudTrucks’ latest tool, CT Cash, is a nonrecourse instant payment service that grants carriers a Visa card that allows drivers to get paid for loads within minutes and can be used for over-the-road expenses and lets owner-operators manage their cash flow as they scale.
CT Cash recently started beta testing updates that will enable fleet managers to provide certain drivers various access to funds, eliminating the need for money transfers.
| Funding details | CloudTrucks |
|---|---|
| Funding amount | $115 million |
| Funding round | Series B |
| Lead investor | Tiger Global |
| Secondary Investors | Menlo Ventures, Caffeinated Capital, Craft Ventures, Khosla Ventures, Abstract, BTV, Kindred Ventures, Flexport, Michael Ovitz and Eric Wu. |
| Business goals for the round | Expand its current technology suite, grow its internal teams and increase integrations with brokers and shippers |
| Post-money valuation | $850 million |
| Total funding | $141.6 million |
According to the company, these tools have led to 9.5 times revenue growth since CloudTrucks’ series A raise in December 2020.
Related: CloudTrucks secures $20.5M Series A
“CloudTrucks has always seen the trucking industry as the backbone of America and has made it its mission to create world-class tools and services that empower truck drivers to make a greater profit with fewer headaches,” said John Curtius, a partner at Tiger Global Management. “We’re excited to see the company continue to transform some of the industry’s broken practices like antiquated payment services and processes.”
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