Despite a weak freight market, Transfix announced the closing of a $40 million Series F funding round led by New Enterprise Associates (NEA) and G Squared, with participation from Canvas.
The latest funding strengthens Transfix’s financial position, supports a path to profitability and represents confidence from investors in the company’s approach, Transfix officials said.
New York-based Transfix is a digital freight marketplace connecting shippers and more than 30,000 carriers. The company was founded in 2013 by CEO Jonathan Salama and Chairman and President Drew McElroy.
“Since day one, we have been relentlessly committed to optimizing, improving, and future-proofing our core business: our tech-enabled brokerage and software solutions for shippers and carriers,” Salama said in a news release. “By staying focused, we continue to build momentum despite one of the most challenging markets in freight history.”
Investors said they see continued growth in Tranfix’s business model.
“We believe that Transfix delivers innovative solutions that help companies optimize in today’s freight market, and will provide continued value into the future,” Carmen Chang, partner and head of Asia at NEA, said in a statement. “Our investment represents our ongoing confidence in the company’s strategy and leadership.”
The Series F raise comes a few months after the company saw its valuation fall to $376 million, a nearly 60% reduction from the $940 million the company was valued at in its last funding round in March 2020.
FreightWaves reported late last year that after announcing the company would not go public through a special purpose acquisition company combination with G-Squared, Transfix would be working with NEA and G-Squared on private financing.
The company had hoped to gain a $1.1 billion valuation through the public offering but pointed to market conditions for the change in direction.
| Funding details | Transfix |
| Funding amount | $50M |
| Funding round | Series F |
| Lead investor | New Enterprise Associates and G Squared |
| Goals for funding round | Strengthens financial position, supports a path to profitability |
| Total funding | $124.6 million |
American Trucking Associations says driver shortage falls to 60,000 drivers, from 80,000, two years ago.
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What is the difference (or precise definition) between Driver Shortage and Over Capacity?
How is one article stating Driver Shortage but another article with Over Capacity? I would assume these are synonmous but apparently not.
FD
This is to keep them alive in the hopes that the market turns so all the other VC money isn’t lost. If, like Convoy, they are losing money (and the Transfix SPAC filings show they’ve never made a profit) then this new $40 mil won’t last long. Crazy world we are in. Maybe the Browns will win the Superbowl this season, too.