Goldman Sachs Invests $202M in Project44, Valuation Doubles

The Impact of COVID-19 on Supply Chains and the Rise of project44

The COVID-19 pandemic caused widespread disruption globally, and supply chains were significantly affected. While numerous applications exist to address workflow challenges within supply chain management, obtaining real-time information directly from transportation providers has proven challenging for shippers and logistics firms.

Introducing project44: A Connective Platform

project44, a Chicago-based company established seven years ago, has developed an API-based platform designed to function as “the connective tissue” linking transportation providers, third-party logistics companies, shippers, and their respective supply chain systems.

Leveraging predictive analytics, the platform delivers vital, real-time data, including accurate estimated time of arrivals (ETAs).

Jason Duboe, the company’s chief growth officer, emphasized that supply chains have experienced substantial transformation. He stated there is an unprecedented need for agility, resilience, and the capacity to swiftly respond to changes throughout the supply chain.

Significant Funding and Valuation Growth

project44 recently announced a $202 million Series E funding round, spearheaded by Goldman Sachs Asset Management and Emergence Capital. Girteka and Lineage Logistics also participated in this financing.

This investment has resulted in a post-money valuation of $1.2 billion for project44, doubling its valuation from the $100 million Series D round led by Insight Partners in December. The company’s total funding since its inception now reaches $442.5 million.

This funding round is potentially the largest investment made to date in the supply chain visibility sector.

Financial Performance and Customer Base

project44 distinguishes itself through its transparency regarding its financial performance. The company reports exceeding $50 million in annual recurring revenue (ARR) this month, representing a 100% increase year-over-year.

Currently, project44 serves over 600 customers, including prominent global brands like Amazon, Walmart, Nestlé, Starbucks, Unilever, Lenovo, and P&G.

Its customer base spans diverse industries, including CPG, retail, e-commerce, manufacturing, pharmaceuticals, and chemicals.

Addressing Pandemic-Related Disruptions

The past year saw numerous supply chain disruptions due to the pandemic, highlighting the importance of technologies that enhance visibility into supply chain operations. project44 actively assisted its customers in mitigating “relentless volatility, bottlenecks, and logistics breakdowns,” even during events like the Suez Canal incident where a cargo ship was grounded for several days.

Future Expansion and Investment Plans

project44 intends to utilize the newly acquired capital to further its global expansion. The company recently announced its expansion into China and has plans to extend its reach into the Asia-Pacific, Australia/New Zealand, and Latin American markets, according to Duboe.

“We are also going to continue to invest heavily in our carrier products to enable more participation and engagement from the transportation community that desires a stronger digital experience to improve efficiency and experience for their customers,” Duboe explained to TechCrunch.

The company also plans to enhance its artificial intelligence (AI) and data science capabilities and broaden its sales and marketing efforts on a global scale.

Strategic Acquisitions

Last week, project44 announced the acquisition of ClearMetal, a San Francisco-based company specializing in supply chain planning software focused on international freight visibility, predictive planning, and customer experience. Duboe stated that this acquisition will result in project44 securing two contracts with Amazon: one for road transport and another for ocean freight.

“Project44 will power what they are chasing,” he added.

In March, the company also acquired Ocean Insights to further strengthen its ocean freight offerings.

Industry Perspective on project44’s Uniqueness

Will Chen, a managing director of Goldman Sachs Asset Management, believes project44’s comprehensive network coverage across both geographies and modes of transport sets it apart. He noted that most competitors primarily concentrate on over-the-road visibility and serve a single region, while project44 operates as a truly global business providing end-to-end visibility across its customers’ entire supply chain.

Jett McCandless, CEO and founder of project44, emphasized that Goldman Sachs Asset Management will contribute to the company’s growth not only through capital investment but also through its extensive network and resources.