Supply chain technology might not be as hot as it was a year ago. But it's still pretty warm.
Case-in-point: Austin-based logistics tech startup Overhaul Group Inc. said March 7 it has raised $38 million in new equity funding, along with $35 million in non-dilutive debt.
Growth equity investor Edison Partners led the round. Also pitching in were eGateway Capital, StepStone Group, and TRM Ventures. Early investors Abbey International Finance, Avanta Ventures and Macquarie Capital also joined in.
Stifel Bank, meanwhile, joined the fold for the debt portion.
Overhaul, which counts Microsoft among its customers, makes software that allows companies better visibility into their supply chain, from tracking shipments in real time to predicting estimated arrival times. Executives said the cash will fuel global expansion, while also funding the company's acquisition of SensiGuard, which it announced last month. That deal more than doubled Overhaul's headcount, adding some 350 employees, bringing its global headcount to over 600.
"This latest growth financing positions Overhaul to be a frontrunner as a profitable business in real-time visibility and risk management with a fraction of capital but at a similar scale to unicorns in the space," founder and CEO Barry Conlon stated. "The funding is also a validation of Overhaul's commitment to transforming supply chain visibility and risk management and our strategy in the fluctuating LogTech market."
Conlon's emphasis on profitability and contrast with the many supply chain tech unicorns stands out. Companies in the industry with billion-dollar valuations include Convoy and Flexport.
And not long ago, Conlon was hyping Overhaul's chance at becoming a unicorn, but venture capital markets have shifted drastically in the past year.
Venture capital funding in the Austin metro totaled $755 million in the last quarter of 2022, down roughly 50% year over year and the lowest quarterly level since Q3 2020, according to data from PitchBook and the National Venture Capital Association. Many VC firms have slowed dealmaking amid concerns about the wider economy.
Overhaul, founded in 2016, has now raised $137 million in total funding, according to Crunchbase. Overhaul has about 20 job openings posted on its site, about half of which are for its Austin HQ.
Austin Business Journal's Will Anderson contributed reporting.
