LONG BEACH, CA, Cargomatic, a leading technology platform that connects shippers and carriers, today announced the closing of a $35 million Series B financing round.
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The financing is led by funds affiliated with Warburg Pincus, a leading global private equity firm focused on growth investing, along with Canaan, Genesee & Wyoming, Xplorer Capital and Muse Family Enterprises. The investment will support Cargomatic's forthcoming geographic expansion efforts and plans to hire key employees to support its next phase of growth.
Founded in 2013 and based in Long Beach, California, Cargomatic is a highly automated, touchless technology-enabled transportation provider focusing on the fragmented short-haul and drayage trucking markets. Through its mobile application, Cargomatic connects shippers, receivers and carriers and eliminates the volume of calls, emails and faxes traditionally needed to book a transaction. Cargomatic enables customers to track information in real-time, quickly access or list untapped trucking capacity within the market, improve service levels - including pick up time and delivery rates - and effectively manage outsourced vendors within one platform.
"Local trucking is a $70 billion industry in the U.S., and small-fleet trucking companies handle 80 percent of deliveries in metropolitan markets. Cargomatic is revolutionizing the current trucking transportation logistics space by addressing its largest pain points through a unique combination of deep mobile and enterprise technology and the robust logistics support necessary for managing the intricacies of short-haul trucking," said Richard Gerstein, CEO of Cargomatic. "We are pleased to have the support of Warburg Pincus, whose extensive experience in logistics and technology-based logistics businesses will be pivotal as we embark on Cargomatic's next chapter, and work to bring our solutions to more customers around the world."
"Now more than ever, the use of technology is critical for the logistics industry to increase efficiency, reduce costs and create more coordinated, streamlined operations," said Alex Berzofsky and Vishnu Menon, Managing Directors, Warburg Pincus. "Cargomatic's unique and effective technology platform is a key differentiator, as it standardizes driver onboarding and is quickly deployable into new markets."
Parag Gupta, Vice President, Warburg Pincus, added, "We see meaningful opportunity to continue delivering value for customers and expanding the platform to new cities. Rich and the experienced Cargomatic leaders are have a strong focus on culture and team rooted in integrity, and we look forward to partnering with them in this new phase of the business."
Cargomatic currently operates in Los Angeles, San Francisco, Chicago, Florida, Seattle, Dallas, Houston and New York, and has thousands of trading partners using its platform, including shippers, manufacturers, retailers and third-party logistics providers.
Headquartered in Long Beach, Calif., Cargomatic is a technology-based transportation company and marketplace focused on first and last mile transportation. For more information, visit www.cargomatic.com
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $45 billion in private equity assets under management. The firm's active portfolio of more than 165 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. The firm has been an active investor in logistics businesses with current and former investments including BlueGrace Logistics, MercuryGate, Coyote Logistics, New Breed Logistics, Ecom Express, Rivigo, and ZTO Express.
Founded in 1966, Warburg Pincus has raised 17 private equity funds which have invested more than $68 billion in over 825 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information, please visit www.warburgpincus.com.