Flexport raises $935M at $8B+ valuation for its logistics management platform

Logistics startup Flexport Inc. today announced that it has closed a $935 million Series E investment at a valuation exceeding $8 billion.

Andreessen Horowitz and MSD Partners led the investment. Flexport previously raised $1 billion in 2019 at a reported valuation of $3.2 billion.

San Francisco-based Flexport provides a platform that enables companies such as online retailers to orchestrate their supply chains through a centralized interface. Using the startup’s platform, a company can order merchandise from its suppliers as well as manage how the cargo is shipped. Flexport provides features for managing shipments of ocean freight, air freight and truck cargo.

Centralizing supply chain operations in one platform reduces the number of software tools that logistics teams have to use as part of their work, which can improve productivity. Another benefit that Flexport promises is simpler shipment tracking. The startup has developed algorithms that automatically flag logistics issues, such as a potential shipping delay, so that companies may take steps to remedy the problem before it affects their supply chains. 

Flexport’s platform analyzes the data that a firm generates as part of its day-to-day supply chain operations to find useful patterns. The platform can, for example, determine the extent to which an e-commerce firm’s total freight shipping costs change from one quarter to the next. Logistics team can consult the insights surfaced by Flexport to find opportunities to increase operational efficiency. 

“The global pandemic and the pressure it put on global supply chains has made the transportation of goods — something many people took for granted — a daily pain point,” said Flexport Chief Executive Officer Ryan Petersen. “This investment signals that the market recognizes the need for a tech-enabled logistics ecosystem that has the visibility and resilience to handle unexpected challenges of any scale.”

Flexport helped companies ship nearly $19 billion worth of merchandise last year. The startup generated a significant amount of revenue in the process: Flexport says that its revenue more than doubled in 2021 to no less than $3.2 billion. Moreover, the startup closed the year with positive earnings before interest and taxes.

Flexport will use the proceeds from its latest funding round to accelerate feature development initiatives and expand into new markets. The startup plans to establish more ecosystem partnerships to support its growth effort. Also on the agenda: making investments in other companies that focus on the logistics technology market. 

Photo: Flexport