Last-mile delivery management software platform, Onfleet, has raised $23 million as it looks to accelerate its product innovation and grow its business globally.
“This new round will help Onfleet accelerate innovation in several key areas and broaden our product offering so we can help existing customers scale their operations while expanding in new markets,” said Khaled Naim, chief executive officer and co-founder of Onfleet.
“The funding will enable us to accelerate the growth of our team and invest even more in our machine learning, route optimization and workforce management features.”
The company’s offering seeks to alleviate the inherent challenges associated with last-mile delivery by helping customers reduce costs, attract and retain delivery drivers, and meet the rapidly growing consumer demand for convenience. Onfleet’s platform also enhances the customer experience by providing retailers and end consumers real-time driver tracking and automated communication.
Several major retailers today use the company’s solution, including Kroger, Total Wine & More, EQ3, Zumiez, and United Supermarkets.
The Series B funding round, which Kayne Partners led, will see the private equity firm’s managing director Robert Shilton join Onfleet’s board.
“We have been impressed by Onfleet’s platform capabilities and agility in a competitive market. We invested in Onfleet recognizing its growth potential in a burgeoning industry and are excited to bring Kayne’s resources in helping to scale the business,” said Shilton.
“Last-mile delivery has become a near indispensable service over these past few years, and our research shows no signs of it slowing down. We see a tremendous opportunity for more enterprise businesses and SMBs to use Onfleet’s software to take ownership over their own delivery experience. This investment will help the company build on its platform, reach large retail enterprises, and continue Onfleet’s exceptional growth.”
With rapid eCommerce growth fueling last-mile delivery, the global last-mile delivery market is expected to grow to more than $200 billion by 2027, up from $108 billion in 2020, according to Statista.