A Scottsdale-based startup that has created a freight shipping management software platform for businesses said the $22 million it just raised during its series B funding round will allow it to expand its offerings and reach new kinds of clients.
The funding round was led by NewRoad Capital Partners, an Arkansas firm that describes itself as operator-led that works with innovative supply chain and logistics companies and brands. Existing investors Greycroft and Lerer Hippeau also participated.
MyCarrier works with small and midsized businesses to connect them to carriers to ship goods. The company launched in 2017 with a focus on what is called less-than-truckload, or LTL, service. It now also handles full truckload, or TL, needs, and the company says the new funding will allow it to expand its offerings beyond that to handle other multimodal shipping needs.
A company spokesperson said the funding will support new investments across all departments, including product/engineering, sales, marketing and operations.
The company was co-founded by CEO Michael Bookout and President Chris Scheid and it operates out of a space in north Scottsdale that it had just moved into in the spring of 2021, when it raised $8 million in series A funding.
After that round, MyCarrier’s leadership said it planned to use the money to enhance its platform and grow its team. Since that time, the company’s headcount has more than doubled from 35 to 74.
MyCarrier’s stated goal has been to become the ubiquitous platform giving shippers instant connections to carriers. Bookout said in a statement that the vision has been based on strong partnerships with carriers and shippers.
"From the beginning, our vision and approach were based on strong partnering, working hand-in-hand with carrier partners and customers to streamline the carrier and shipper experience to create exceptional business and customer outcomes," Bookout said in a statement.
Scheid said the company has been able to overcome technology fears among many businesses.
“Today, we are providing small and medium-sized businesses with visibility into their supply chains, once only available to large enterprises,” he said in a statement. “And it's absolutely needed given global supply chain disruptions and chaos."
MyCarrier's platform shipments up 52%
MyCarrier’s platform works by taking data about a shipment and generating automated quotes, enabling booking execution with electronic bills of lading and providing insurance and other payment details. The company works with 5,162 shippers, and it has platform automation partnerships with 15 top-rated LTL carriers and more than 70 integration carriers.
The company said its platform shipments have grown by 52% year over year, and the number of active shippers grew by 57% in the second quarter, with corresponding revenue up by 124% and insurance revenue up 150%, though it didn't provide actual financials.
NewRoad Capital Partner Tracy Black will join MyCarrier’s board of directors as a result of the investment. He said his firm looks forward to applying MyCarrier’s technology to more shipping modes and to the freight audit and payment process. He also praised the Scottsdale company’s expertise.
"Mike and Chris are industry veterans that really understand the challenges in the industry and have built an outstanding team and technology platform that is easy to use and drives major operational efficiencies for both shippers and carriers," Black said in a statement.
Correction: The original headline on this article incorrectly stated the amount of the funding
