Encinitas-based Flock Freight has raised $215 million in a Series D financing round led by SoftBank Vision Fund 2.
New investors Susquehanna Private Equity Investments LLP and Eden Global Partners and existing investors SignalFire, GLP Capital Partners and GV (formerly Google Ventures) also participated in the round.
After the Series D round, announced on Oct. 20, the company is now valued at $1.3 billion, making Flock Freight San Diego’s newest unicorn.
The company’s last raise took place in November 2020 — a $113.5 million Series C round also led by SoftBank.
Flock Freight’s proprietary software allows shippers to pool less-than-full loads to maximize available space on trucks — and avoid stops at terminals, which result in longer transit times and increased risks of damaged or lost product.
With its software solution is increasingly in demand across the transportation industry, Flock Freight has been revving up sales in 2021, generating 325% year-to-date revenue growth, according to company officials. Revenue is currently in the “hundreds of millions,” according to company officials, who were not willing to be more specific.
Earlier this year, the company moved its headquarters from Solana Beach to a larger, 20,000-square-foot office in Encinitas.
Flock plans to use the proceeds from the Series D round to make further investments in its algorithmic freight pooling technology, expand its sales and operations teams and open a new, 15,000-square-foot office in Chicago’s Fulton Market.
Planning to Add 300 More Employees
To keep up with the company’s explosive growth, Jeff Lerner, Flock Freight’s vice president of marketing, said the company plans to hire an additional 300 workers, including data scientists and sales professionals with experience in the freight shipping industry.
Lerner said 100 to 150 will be employed at the new Chicago hub, which is scheduled to open later this year.
“With all of the recent disruptions to the supply chain caused by COVID, our shared truckload solution is even more important – and valuable to our customers,” Lerner said.
Oren Zaslansky, CEO and founder of Flock Freight, said the additional investment from Softbank “adds more fuel to our sustained triple-digit growth."
“Our continued partnership with SoftBank, as well as our new relationship with Susquehanna and Eden, enable us to keep leading the freight industry’s change towards filling trucks at scale without sacrificing service performance,” Zaslansky added.
Doing Well by Doing Good
In August 2020, Flock Freight was awarded B Corporation status to demonstrate its pooled freight system can help to reduce the massive amounts of carbon dioxide emissions the transportation industry pumps into the atmosphere every year. Lerner said the company’s shared truckload technology “moves freight in a way that treats the environment and drivers with care – and eliminates waste and inefficiencies.”
The company walks its eco-friendly talk, recently partnering with Carbonfund.org to become the only transportation service provider to offer carbon-neutral shipping at point of sale.
Since it began operating in 2015, the company says it’s eliminated 15,000 tons of carbon dioxide emissions, with a goal of reaching 20,000 tons by the end of 2021.
IPO: ‘We’ll know When Time is Right’
SoftBank believes Flock Freight’s technology is revolutionizing the trucking industry. “We are pleased to continue our support of Oren and the Flock Freight team as they aim to reinvent freight shipping,” said Andrew Straub, investment director at SoftBank Investment Advisers.
Lerner said Flock Freight may decide to go public “in two or three years. It’s on our agenda. I think we’ll know when the time is right,” he added. “But for now, thanks to this latest round, we have the resources we need to invest in our technology and people.”
Mike Krenn, CEO at Connect/SDVG, said CEO Zaslansky’s steady leadership at Flock Freight is a big reason for the company›s success. “To his credit, Oren has always been focused on the business,” said Krenn, whose followed Flock’s progress since the company’s early days when their office was in Vista.
“Flock Freight was very capital conscious and efficient as an early-stage startup,” Krenn added. “Oren’s come a long way since then. He’s always been very focused. I’m sure he’ll tell you this $200 million is just a part of the start — he’s going to build a big, successful company."
CEO: Oren Zaslansky
Revenues: Up 325% YTD in 2021
Notable: Company employees are called ‘flockers'
Contact: (855) 744-7585