Onfleet, the leading last mile delivery management software platform, today announced it raised $23 million in Series B funding. The new round will be used to accelerate Onfleet's technology innovation and expand its product and engineering capabilities to help businesses around the world launch, optimize and successfully scale their delivery operations.
The new round, led by Kayne Partners, the dedicated growth equity group of Kayne Anderson Capital Advisors, L.P. with participation from existing investor Savant Growth, brings the company's total capital raised to over $40 million. Kayne Partner's Robert Shilton will join Onfleet's Board of Directors.
"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. 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. We're ready for our next chapter and look forward to continuing to service our customers with industry-leading last mile solutions," Khaled Naim, Onfleet's CEO and Co-Founder said.
Onfleet's technology alleviates the inherent challenges in last mile delivery. Its platform helps customers reduce costs, improve customer experience, attract and retain delivery drivers, and meet the rapidly growing consumer demand for convenience. Onfleet will use the new investment to enhance its enterprise offering, enabling large retailers to seamlessly manage thousands of daily deliveries.
"As the largest traditional brick-and-mortar grocery chain in the country, we have an enormous opportunity to serve even more consumers with a stellar delivery program. Integrating the Onfleet platform into our systems has allowed us not only to expand our reach, but it has also helped us better track our orders in real time and ensure our customers are getting their deliveries in an efficient and timely way," said Ryan James, Sr. Manager Operations Innovation at Kroger.
Onfleet's automated route optimization reduces the number of drivers needed and miles driven, improvig profit margins while reducing carbon emissions. Onfleet's platform also enhances the customer experience by providing retailers and end consumers with real-time driver tracking and automated communication. Onfleet's software has powered hundreds of millions of deliveries for thousands of businesses, including companies like Kroger, Total Wine & More, EQ3, Zumiez, and United Supermarkets.
"The face of retail has changed and Onfleet's mission to empower businesses to offer efficient and delightful delivery has never been more important. We're just getting started and have big plans for the coming years," Naim continued.
Robert Shilton, Managing Director at Kayne Partners, said, "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." According to Statista, by 2027, the global last mile delivery market is expected to grow to more than $200 billion from $108 billion in 2020. The growth of the last mile delivery market is led by rapid e-commerce growth.
"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," Shilton said.
For Onfleet images, please see the press kit here.
Onfleet is a San Francisco-based technology company that helps businesses streamline their delivery operations. Onfleet's software powers millions of deliveries per week for thousands of businesses around the world.
Onfleet's platform includes a web-based dispatch dashboard, intuitive drive apps on iOS and Android, real-time tracking and notifications for customers, and a robust API. Onfleet helps businesses route and dispatch efficiently, collect proof of delivery, access comprehensive last-mile analytics, and provide a branded, delightful customer experience. To learn more, please visit www.onfleet.com
About Kayne Partners
Kayne Partners, the Los Angeles-based dedicated growth private equity group of Kayne Anderson Capital Advisors, L.P., leverages its large firm resources to partner and invest in lower middle market, privately held, high growth, enterprise software and tech-enabled service businesses across North America. The team has developed a durable and repeatable investment strategy and process for applying its stage expertise through sourcing and investing in companies at an early inflection point, adding value and scaling through organic growth and M&A, and exiting these must-have assets to strategics & financial sponsors. Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth equity. For more information, please visit kaynepartners.com
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