Overhaul Group Inc., an Austin-based supply-chain visibility software company, has closed a $35 million series B funding that co-founder and CEO Barry Conlon said will fuel “at least” the hiring of another 50 people.
Overhaul’s software provides supply-chain managers and shippers real-time information about cargo in transit.
Co-founded in 2016 by Conlon, the company currently employs about 135 globally, roughly 80 of whom are based in Austin. Overhaul now seeks to fill about 20 open positions in the Texas capital, the CEO said.
Conlon described his projection of adding another 50 as a “conservative” estimate. In fact, he said the company's growth trajectory has it on a path to become a unicorn, a privately held startup valued at $1 billion or more, "very quickly."
“Ideally, we’d like to hire in Austin, but it’s getting to be a tough environment to recruit engineers,” he said. “The competition for talent is just insane.”
That competition has intensified as more companies move headquarters to Central Texas or establish significant offices here. Conlon said CEOs must appeal to job candidates with individualized packages, stock options and the opportunity to work remotely at a non-reduced salary, in a hybrid environment and on projects that offer real possibilities for ownership, initiative and creativity.
“Smart engineer types who understand the local ecosystem know that they’re not going to get that type of opportunity if they work for Apple,” he said.
The situation is “not going to get better,” Conlon said, who also emphasized that retaining employees also is a challenge. “We don’t want Google poaching employees we’ve invested heavily in with some insane offer.”
Many experts see a "turnover tsunami" on the horizon as the pandemic loosens its grip on the economy.
Conlon also is solving the problem by focusing on hiring in places such as Dublin, Ireland, where Overhaul has an office.
Other geographic hiring target locations include Mexico, where the company has a presence, and Canada. And, “Brazil is on the way,” Conlon said.
Australia-based investment bank Macquarie Capital Ltd.’s principal finance division led Overhaul’s $35 million funding round. New Jersey-based investment firm Edison Partners and Avanta Ventures, the venture arm of California-headquartered CSAA Insurance Group, also participated. Edison Partners led the company’s March 2020 close of a $17.5 million funding round. The company has raised a total of $55 million. Conlon said the company might not need to seek more funding.
“Overhaul’s ability to create full visibility, security, and connectivity in the supply-chain market is an unprecedented feat for the industry,” Jared Doskow, Macquarie Capital managing director, said in a statement. “Overhaul is leading the industry into a new era of providing unparalleled data, intelligence, and transparency, while creating opportunities of digitization in what is only an analogue or physical-documentation space.”
Doskow joined the Overhaul board as part of the deal.
Customers total more than 30 and include Fortune 100 companies that operate in sectors such as technology, logistics, pharmaceuticals, health care and food and beverage. Examples include Washington-headquartered Microsoft Corp. (Nasdaq: MSFT), New York City-based pharmaceutical company Bristol Myers Squib Co. (NYSE: BMS) and Michigan-headquartered Gordon Food Service.
When predicting unicorn status for Overhaul, Conlon pointed to a competitor, Chicago-headquartered Project 44 Inc., recently announcing a $202 million series E funding round at a valuation of $1.2 billion. Goldman Sachs Asset Management and Emergence Capital led the round.
“This is a very active investment space,” Conlon said.
Comparing Overhaul’s and Project 44’s capital raises and revenue, he said Overhaul is “on a trajectory in revenue and growth where we’ll pass them in 18 to 24 months.”
Other competitors include France-based Shippeo SAS and Singapore-headquartered DIMUTO Pte. Ltd., according to Zoom Information Inc.
Conlon declined to share revenue figures and said the company is focused on scaling rapidly rather than profitability. The CEO said the business currently is growing 150% to 200% year over year.
Overhaul's 10,000-square-foot Austin office is at 6801 Capital of Texas Hwy. Diana Holford from JLL has been the startup's broker for several years.
With the anticipated growth, the CEO said that the company “is looking at all our options” regarding the possibility of leasing a larger space.
Conlon is originally from Ireland and spent 11 years in the Irish Defense Forces before becoming a United States citizen in 2011. He is former president and CEO of FreightWatch, which United Technologies Corp. acquired in 2012.
