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Supply chain tech startup project44 secures $420M from Goldman, TPG at $2.2B valuation

project44
project44

The logistics industry has been put to the test during the last two years. Due to the pandemic, geopolitical factors, and growing demand for online sales, the supply chain is under significant strain. Logistics managers are concerned about its long-term viability, consistency, and traceability.

Only 21% of industry experts, according to Gartner, have no trouble with supply chain visibility (SCV). Meanwhile, Project44, a firm that creates supply-chain analytics software for shipping and logistics companies, announced that it has raised $420M in a funding round valued at $2.2B.

The funding round saw participation from Emergence Capital, Insight Partners, Chicago Ventures, Generation Investment Management, Sapphire and Sozo Ventures.

The company has set a new funding record for Logistics Tech enterprise Software-as-a-Service (SaaS) companies, according to the statement, when paired with a previous $202 million stock deal.

“Today, project44 is assisting businesses in overcoming supply chain difficulties ranging from inflationary pressure and lockdowns to unpredictable weather and port bottlenecks,” says Jett McCandless, project44’s Founder and CEO. “Our year-over-year growth reflects these macroeconomic tailwinds and the competitive advantage we can provide our customers. We can provide even greater value to our clients and consolidate our position as the global network that fuels the supply chain’s future with continued backing from our investors.”

With over 142,732 multimodal carrier integrations and 2.7 million trucks, project44 has the largest carrier network of any supply chain visibility service.

“As shortages, delays, and bottlenecks increase, supply chain visibility has become increasingly crucial,” explains Thoma Bravo Partner Robert (Tre) Sayle. “The ability of project44 to tackle even the most difficult of these problems is unrivalled. Project44 has created a unique platform that offers tremendous value to the whole global supply chain by continuously changing to meet consumer needs.”

project44 growth

In Q3 of 2021, project44 claims to have brought in $12.7M in new annual recurring revenue (ARR). During that time, the company has closed 117 logos, resulting in a 170 percent rise in year-over-year bookings and a 216 percent increase in year-over-year logo growth.

Net retention for 2021 is 133 percent, with annualised gross retention at 96 percent. The ARR of project44 has surpassed $100M, with a subscription gross margin of 70%, which is rising 3% year over year. project44 will roughly double its investment in product and engineering in 2022 to deliver enhanced real-time visibility across more modes of transportation in more regions, building on its previous success.

project44’s international reach continues to grow, with supply chain visibility now available in 166 countries. Project44 employs over 1,000 people in 17 offices across the world. Hundreds of new brilliant team members will be hired throughout China, Europe, Latin America, North America, and Japan in the next year.

Ivana Savic-Grubisich, project44’s first director of diversity, equity, inclusion, and culture, was also hired. 

Focus on M&As

According to the statement, project44’s acquisition of Convey in September allowed it to extend real-time visibility and exception management to last-mile services such as parcel, courier, white-glove doorstep delivery, and visibility into item returns. The acquisition of Ocean Insights in March provided much-needed visibility into cargo at sea. ClearMetal, which was bought in May, established project44 as a pioneer in artificial intelligence and machine learning, reducing costs throughout the supply chain through automation.

Founded in 2014 by Jett McCandless and Wally Ibrahim, Project44, a Chicago-based startup has developed an API-based platform that it claims functions as “the connecting tissue” between transportation providers, third-party logistics providers, shippers, and their supply chain systems. The software uses predictive analytics to deliver critical real-time information such as expected arrival times (ETAs). It competes with the likes of FourKites, SAP Integrated Business Planning, Shippeo, Descartes Macropoint. 

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