FarEye, a New Delhi based machine-learning logistics platform, recently announced the completion of their series D funding round. The company initially raised $25M but extended the round in order to raise an additional $13M in funding. Since 2013, FarEye has raised a total of $53M in funding; this latest round will be used to continue the company’s expansion into global markets and further improve their services.
Why this transaction?
The York IE team chose this as our Transaction of the Week (TOW) to continue talking about the growing trend we’ve seen across the broader market. Recently, there has been an increase in the number of solutions aimed at digitizing workflows. FarEye’s AI platform uses machine-learning to address bottlenecks in the workflows of logistics companies; by implementing FarEye’s solution, logistics companies are able to reduce delivery times, increase delivery productivity, and reduce risk. FarEye’s most recent funding round points to another trend that has been driving digitization which is the COVID-19 pandemic. As more and more consumers are opting out of in-person transactions, logistics companies are seeing a surge in online orders. In order to satisfy this increased demand, companies are realizing that their current delivery networks need to be upgraded.
Logistics Companies Turn to Software to Alleviate Growing Pains
Taking a deeper look into this trend, the York IE team chose to gather data on logistics companies to determine what percentage of funding rounds were dedicated to logistics software.
Looking at the data in this graph we can see that logistics focused software has accounted for roughly 20% of funding in nearly every quarter since 2016. The York IE team believes that this trend will not only continue but will experience accelerated growth in part due to the pandemic and the rise of ecommerce.