A transportation SaaS startup from Toronto, Rose Rocket, has secured Series B funding of US$38M from Scale Venture Partners, Y Combinator & several other investors. The Tech Factor writes about the full details of the development.
Rose Rocket, a transportation management software (TMS) SaaS startup, has raised US$38 million in a Series B funding round. Scale Venture Partners led the recent funding round. Other participants included Y Combinator, Addition Capital, Shine Capital, Scale-Up Ventures, and Founders Club. Since its inception, Rose Rocket has raised a total of US$69 million. This includes a previous raise of US$25 million in October 2021.
The Toronto-based company was founded in 2015 by Justin Sky, Justin Bailie, and Alexander Luksidadi, all of whom are experienced professionals in the trucking and logistics industry. They identified the trucking industry’s need for real-time collaboration and a shared system of record, so they created a software-as-a-service (SaaS) TMS called Rose Rocket. This tool addresses key industry challenges such as capacity, visibility, supply chain disruptions, and labor shortages.
SaaS is transforming trucking and logistics
The TMS offers a feature-rich platform that allows trucking companies to streamline freight shipping and delivery fleet management. Notably, their platform enables customers to place orders through a self-service web portal, automates quote generation, and provides real-time tracking of shipments. The company simplifies logistics operations by offering features such as mobile app integration for dispatchers and reducing manual data entry through backoffice business applications.
Rose Rocket is a special place and product. We have built a community of freight professionals and customers that are dedicated to elevating the entire industry to operate at a higher level. Our network TMS product is the first of its kind, and our ability to connect all corners of our customers’ supply chain is creating a tidal wave of adoption and change in our industry. We’re excited to enter the next phase of our growth and take our winning playbook into the enterprise.”
Justin Sky, CEO and Co-founder of Rose Rocket
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Rose Rocket’s Transportation Management System (TMS) is known for its adaptability and personalization. The company says it focuses on meeting the operational patterns of trucking companies by offering customizable fields and unique business rules. It enables communication and collaboration among truckers, brokers, carriers, shippers, and drivers, supporting various workflows and integrating necessary apps. Rose Rocket’s focus extends to the entire freight network, including third-party logistics providers (3PLs) and carriers and brokerages in the US and Canada. Moreover, it also offers a wide range of service offerings such as LTL, FTL, hybrid, and multi-division services.
Rose Rocket stands alone in its ability to serve companies of all sizes, bringing together everyone in the freight network. Its platform can fundamentally shift how transportation companies run at a time when help is desperately needed.”
Alex Niehenke, General Partner at Scale Venture Partners
Rose Rocket’s growth plan
Rose Rocket said it will use the funding to target middle market and larger fleets. It also intends to improve its platform and expand customer acquisition efforts. Additionally, it aims to invest in product development and enhance the user experience. Their vision is to serve the entire trucking industry, from single brokers to large fleets.
The company has seen substantial growth, with a customer base of 1,000 to 1,500 clients. It recorded a 9x customer growth in the past year. The company aims to reach $100 million in annual revenue in three years.
The funding announcement comes at a time of growth for the transportation management software market. The global TMS market was valued at USD 10.45 billion in 2022. It is expected to grow at a CAGR of 14.8% to reach an estimated US$31.18 billion by 2032, according to Grand View Research. [Tip: Read more new market reports & analysis here].
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