Flexport, the platform for global logistics, has announced a $935 million Series E investment round funding led by Andreessen Horowitz and MSD Partners with a strategic investment from Shopify, as well as participation from existing partners DST Global, Founders Fund, SoftBank Vision Fund 1, and other investors including Kevin Kwok. The investment brings Flexport’s post-money valuation to over $8 billion.
Flexport will use the funding capital to accelerate development of its technology platform for global logistics and continue building an ecosystem that’s efficient, transparent, and inclusive – everything that logistics isn’t today. The investment will also allow the company to continue to expand into new geographies and markets, and further the logistics tech ecosystem by investing in and partnering with new companies in the space.
“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 Ryan Petersen, founder and CEO of Flexport. “This investment signals that the market recognises the need for a tech-enabled logistics ecosystem that has the visibility and resilience to handle unexpected challenges of any scale.”
The raise follows years of uninterrupted growth for the company, particularly in the last twelve months: Flexport’s revenue more than doubled in 2021 as it moved nearly $19B in gross merchandise for its clients across 112 countries.
“Global trade is facing historic challenges, which demand innovative approaches that address both the current difficulties and more systemic issues,” said David George, General Partner at Andreessen Horowitz. “Flexport’s platform, business model, and data-driven insights together uniquely position the company to continue making a substantial impact on this multi-trillion dollar industry.”
Bob Swan, Growth Operating Partner at Andreessen Horowitz, will join Flexport’s board of directors, and representatives from Shopify and MSD Partners will join as board observers.
“At Shopify, we see first-hand the challenges millions of entrepreneurs face when running their businesses, with logistics being one of the most daunting complexities in commerce today,” said Bram Sugarman, Director, Product Acceleration, at Shopify. “We are so inspired by the progress Flexport has made in this critical area and are excited to support them in their ambitious mission to modernise the supply chain, breaking down barriers to trade for businesses everywhere.”
“Flexport’s extraordinary team, led by a strong founder in Ryan Petersen, is bringing to bear deep industry knowledge and critical technology capabilities in building a logistics sector leader,” said Gregg Lemkau, CEO of MSD Partners. “This investment will help accelerate and expand the innovation that will benefit the broader trade ecosystem.”
The company expects the financing to close in the first quarter subject to customary closing conditions, including the receipt of regulatory approvals.