CPE News (6.20.2023) – Rose Rocket has raised US $38 million in Series B funding led by Scale Venture Partners with continued participation from current investors Addition Capital, Shine Capital, Scale-Up Ventures, Funders Club and Y-Combinator.
The new funding round brings company’s total funding to date to US $69 million.
Rose Rocket raised US $25 million in Series A funding in October 2021 led by Addition Capital and Shine Capital with participation from Ripple Ventures, Scale-Up Ventures, Kevin Mahaffey, Funders Club and Y-Combinator. It closed a US $6 million seed round in October 2020 led by Ripple Ventures.
Founded by Alexander Luksidadi, Justin Sky, and Justin Bailie, Toronto based Rose Rocket is a SOC II compliant, cloud-native provider of transportation management software (TMS) for trucking companies and 3PLs
Rose Rocket will use funds to accelerate the company’s expansion into larger fleets in the enterprise, as well as to further accelerate its investments in product development and network collaboration efforts to serve its rapidly growing customer base.
photo credit: Rose Rocket
News Release
Rose Rocket Raises $38M USD Series B to Scale its Network-Centric TMS Solutions while Expanding into the Enterprise
Rose Rocket’s freight network grew 47X since the last funding round, enabling unprecedented collaboration and visibility by bringing the industry online with modern solutions.
June 20, 2023 09:00 AM Eastern Daylight Time
TORONTO–(BUSINESS WIRE)–Rose Rocket, a SOC II compliant, cloud-native provider of transportation management software (TMS) for trucking companies and 3PLs, today announced that it has closed $38M USD in Series B funding, bringing the company’s total funding to date to $69M USD. Scale Venture Partners led the equity round, with continued participation from current investors Addition Capital, Shine Capital, Scale-Up Ventures, Funders Club and Y-Combinator. Funds will be used to accelerate the company’s expansion into larger fleets in the enterprise, as well as to further accelerate its investments in product development and network collaboration efforts to serve its rapidly growing customer base.
“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,” said Justin Sky, CEO and Co-founder of Rose Rocket.
The transportation industry generates more than $800 billion in revenue a year, and yet it has been left behind by the major technological improvements of the past 15 years. Trucking and logistics companies are faced with outdated solutions to solve today’s most pressing challenges: capacity, visibility, supply chain disruptions, and labor shortages. Rose Rocket has been helping companies navigate with modern technology that bridges the gap in visibility and collaboration. For instance, its network-centric TMS optimizes existing resources for carriers and brokers, reducing the need to rely on scaling assets for growth. It also unifies stakeholders on one platform, ensuring streamlined visibility and transparency for proactive exception management throughout the supply chain. Its network efforts have been validated, having seen a 47X growth in the scale of the network since the last funding round.
Transforming Trucking and Logistics
In an industry where other TMSs are just starting to migrate to cloud, Rose Rocket is cloud-native, with a product-led motion that focuses on user experience over costly and heavy-handed implementation processes. This allows the industry a lower barrier to entry when it comes to TMS technology, ensuring that neither price nor user education would stand in the way of effective software adoption. It is also reliable and secure. In fact, the Rose Rocket platform recently achieved SOC2 compliance – an accomplishment that allows customers to have peace of mind, especially in the middle market and enterprise space.
Rose Rocket’s value proposition clearly resonates. Over the past year, the company has grown to serve all fundamental modes of for-hire transportation, from brokers and 3PLs, to truckload and LTL carriers, even supporting several large enterprise carriers with highly specific business process requirements. Serving a wide range of business models from 2 trucks to 2000 allows Rose Rocket to build solutions that mirror the needs of the industry with targeted and buildable offerings. It ultimately lays the foundation for better collaboration between the entire transportation industry, solving capacity and labor challenges in the long run.
“Within the massive transportation and logistics industry, the mid-market and enterprise operate with highly custom workflows, and no two companies are the same. The TMS that wins in this space must be able to accommodate for changes in how companies work,” said Alex Niehenke, general partner at Scale Venture Partners. “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.”
To learn more, please visit www.roserocket.com.
About Rose Rocket
Rose Rocket is a leading provider of enterprise-grade transportation management software (TMS) for trucking companies and 3PLs. Its network-driven TMS allows trucking companies to leverage their network of drivers, customers, and partners to unlock visibility and capacity. Additional product offerings include industry-leading driver mobile app, customer and partner portal technology, and an open architecture that allows for native integrations, EDIs, APIs, and more.
With Rose Rocket, trucking companies and 3PLs add efficiency and automation at every step of the transport process, allowing for growth through network optimization. Rose Rocket operates in the United States and Canada, catering to carriers and brokerages that have LTL, FTL, hybrid, and multi-division service offerings. Rose Rocket is proudly headquartered in Toronto.
Contacts
Leigh Disher
leigh@gmkcommunications.com