The real-time truckload tracking and visibility startup said it will use the investment funds to integrate more data sources into its platform, expand internationally, and cover additional transportation modes such as LTL, rail, intermodal and ocean.
Real-time truckload tracking and visibility startup FourKites has secured $13 million in Series A funding, the company said in a statement.
The funding round, led primarily by investment firm Bain Capital Ventures (BCV), is in addition to $3.5 million in seed and debt funding, bringing total outside investment in the two-year-old company to $16.5 million. Existing investors Hyde Park Venture Partners, Hyde Park Angels and Otter also participated in the latest round.
Based in Chicago, Ill., FourKites provides load tracking across more than 2.5 million trucks using mobile, cloud and analytics software. The company’s platform runs on proprietary technology and a network of more than 45 partnerships with providers of GPS-enabled electronic logging devices (ELDs).
Mandated by the U.S. Department of Transportation for use in all commercial trucks by the end of 2017, ELDs automatically record driving time, engine hours, vehicle movement, miles driven and location information. Under federal hours-of-service regulations, commercial truck drivers are limited in the number of hours they can work and drive daily, as well as on a weekly basis.
ELDs are meant to allow drivers to track their driving and non-driving activities, but the Owner-Operator Independent Drivers Association (OOIDA) have said Federal Motor Carrier Safety Administration (FMCSA) rules requiring their use do not advance safety and are “arbitrary and capricious.”
Given its relationships with ELD providers, FourKites said it is in a unique position to capitalize on what it calls the “biggest data explosion in the history of trucking.”
The company said it will use the investment funds to integrate more data sources into its platform, expand internationally, and cover additional transportation modes such as less-than-truckload (LTL), rail, intermodal and ocean.
In addition, FourKites is building new applications to provide data analytics based on information collected by the platform, and plans to add more than 100 jobs in the Chicago market within the next year.
Under the investment agreement, Ajay Agarwal, managing director of Bain Capital Ventures, will join the FourKites board of directors.
Agarwal led BCV’s early investment in e-commerce distribution center automation company Kiva Systems, which in 2012 was acquired by Amazon.com Inc. for $775 million.
“Logistics is an industry primed for disruption. We are absolutely thrilled to partner with Bain Capital Ventures as we execute our vision to provide real-time visibility and connectivity across the logistics industry,” FourKites founder and CEO Mathew Elenjickal said of the latest investment funding.
“Transforming any industry comes with regulatory and execution challenges. There is no one better than BCV and Ajay Agarwal to guide us in executing our vision and building an iconic company.”
“Supply chain efficiency has become paramount for every kind of business, and we’re excited to help Matt and FourKites realize their ambitious yet achievable vision,” added Agarwal. “FourKites has marquee customers achieving impressive results, boosting on-time performance from the low 90 percent range to 97-98 percent, which translates into less wait time at warehouses, lower stock-outs, faster inventory turns – and most importantly, happier customers.”
FourKites is one of three primary companies addressing the load visibility and analytics market, along with MacroPoint and 10-4 Systems. FourKites has been embroiled in a patent dispute with MacroPoint over what MacroPoint considers infringement of five of its patents.
FourKites secures $13m in Series A funding
