Dispatch, a logistics tech startup, announced Monday it raised $50 million in a Series C round of funding. The Bloomington-based company is using the money from New York City-based PeakSpan Capital, to hire more employees and expand into new markets.
Since its last financing round in 2020, Dispatch doubled its product and engineering teams as it grew 197% year over year. The company is now focused on growing its go-to market teams and product-engineering teams as it expands from 50 to 100 markets over the next 18 months.
The company has 170 employees, but expects to be closer to 250 by the end of the year, CEO and co-founder Andrew Leone said.
Dispatch provides on-demand logistics support for companies that need to deliver products like construction supplies or plumbing equipment to construction sites or other businesses.
Leone said rapid expansion is critical for Dispatch's key partners because they operate in markets the firm may not be in yet.
"We're very excited to grow geographically, but we're also then resourcing to grow deeper inside of the markets we're in," Leone said. "We focused on breadth first, rather than market depth, primarily because our customers are national."
The expansion is looking at sites nationwide, but the company is specifically targeting California because it doesn't have a presence there yet.
Leone added that the deal is well-timed because of the current inflationary period and rocky economy.
"What we're doing is building a variable infrastructure for these businesses that allow them to compete without the capital investment," he said.
Earlier this year, Dispatch was in the process of listing on the Australian Stock Exchange, but that was before PeakSpan Capital put an offer together that "made a ton of sense for us," Leone said.
"We ended up not going through the listing and staying private, which I'm super excited about. I think it's a great, great decision," he said.
Dispatch raised an $11.1 million Series B round in 2020 and a $7.8 million Series A round in 2018.
