Start-up firm Project44 that allows the largest companies in the world to track their shipments across the supply chain globally reached a $2.4 billion valuation after raising $240 million equity funding. The round of equity funding from the investor group was led by Thomas Bravo, TPG, and the asset management arm of Goldman Sachs Inc.
As per Bloomberg News, the investor group, which also includes Sozo Ventures, Emergence Capital, Chicago Ventures, Insight Partners, Sapphire, and Generation Investment, acquired $180 million closely-held shares of Project44 from existing investors, including OpenView, according to the founder and CEO Jett McCandless in an interview.
Based out of Chicago, Project44 plans to use the proceeds of the funds to expand their network, hire engineering and product staff, and make strategic acquisitions across nations including China, Japan, and Brazil as per CEO McCandless. The company tracks more than one billion packages per annum. According to McCandless, it has become the connective tissue between various stakeholders in the transportation industry, including shippers and logistic providers.
McCandless compares Project44 to a global distribution network that connects travel booking platforms and accommodation providers like hotels.
The company’s machine learning technology helps to predict the delivery outcomes, thus helping customers to be proactive than reactive. As per McCandless, sellers will have a better sense of commitment for delivery schedules with customers or retailers, and buyers can plan accordingly to ensure shipment can reach on time.
96% of the world’s total containers shipped every day are tracked by Project44. In 2021, the Ever Given cargo ship got stuck in the Suez Canal and blocked the shipping route crucial for others; the start-up made their ocean visibility services free. After using the free product, companies like Bridgestone Corp, Goodyear Tire & Rubber Co, and Medtronic Plc signed up for the paid subscription and joined other companies like FedEx Corp and Amazon.com Inc.
Project 44 reached $ 100 million in revenue leading up to December 2021 and targeted $170 million for the fiscal year. As per McCandless, after attracting interest from Private Equity Funds in 2021, the company will probably go for the traditional Initial Public Offering route though no time frame has been decided.
As per an email statement from Robert Sayle, partner of Thomas Bravo, the increase in delays, shortages, and bottlenecks has made supply chain visibility necessary. Project44 is a valuable platform that seeks to revolutionize the entire supply chain globally.
