Cargomatic, which connects shippers with local truckers to eliminate unused cargo space via an Uber-like app, has raised $8 million to scale and expand into new markets.
The Venice logistics startup has naturally grown throughout California while beta-launching in New York, but Chief Operating Officer Brett Parker said Cargomatic is looking to replicate its efficient trucking model in other transportation hubs throughout the country and overseas. He named Chicago, Dallas and Houston as examples of commerce ports whose large markets could entice a launch.
The 25-person team will also use the funding to expand its sales, engineering and launch teams.
Cargomatic, which launched in June with $2.6 million, has done tens of thousands of truck shipments that equate to 100 million pounds of cargo, according to Parker. Its network of 400 shippers moves hundreds of truckloads a day, and that network continues growing.
“The guys who are in our program have seen up to 25 percent more efficiency, which translates into revenue,” Parker said.
Cargomatic has raised a total of $10.6 million to date. The latest round was led by Canaan Partners. Previous investors include Volvo Group Venture Capital, Winklevoss Capital, Morado Venture Partners, SV Angel, Sherpa Ventures, Structure Capital and individual investors.