One of Chicago’s hottest logistics startups just landed a large round of new funding as it continues to grow its supply chain software business.
FourKites announced Tuesday that it has raised $50 million in a Series C round, led by existing investors August Capital and Bain Capital Ventures. Other existing investors that participated in the round include CEAS Investments and Chicago’s Hyde Park Angels.
The new financing brings FourKites’ total venture capital to $100.5 million.
FourKites, founded in 2014, makes software that helps companies predict when shipments will arrive at scheduled stops. It can also monitor load temperatures and analyze a company’s supply chain data, helping businesses improve on-time delivery and minimize product loss. FourKites' clients include large brands like AB InBev, Conagra Brands and Kraft Heinz.
FourKites said it will use the new funding to add features to its supply chain platform. Specifically, the company says it plans to extend its “zero deadhead” initiative, which helps shippers share unused truck capacity. By sharing, FourKites says it can reduce 15 to 20 percent of shipping costs.
“We believe in a future where every supply chain is collaborative, intelligent and networked,” said FourKites’ Founder and CEO Mathew Elenjickal in a statement. “Predictive intelligence helps shippers find new ways to reduce costs, improve service and drive innovation. This comes at a critical time for the industry, as it responds to changing customer expectations, government regulations and cost pressures.”
FourKites, which has grown to more than 300 employees across its offices in Chicago and around the world, is just the latest Chicago logistics tech company to raise a large round of funding. Project44 raised $80 million over two rounds last year and ShipBob raised $40 million in September. 2018 was a notable year for the local logistics-tech industry, and venture capitalists and tech experts predict 2019 will hold more of the same.
