Investment led by Andreessen Horowitz and MSD Partners will accelerate development of pioneering industry technology
SAN FRANCISCO–(BUSINESS WIRE)–Flexport, the platform for global logistics, today announced a $935 million Series E investment round led by Andreessen Horowitz and MSD Partners with a strategic investment from Shopify, as well as participation from existing partners DST Global, Founders Fund, SoftBank Vision Fund 1, and other investors including Kevin Kwok. The investment brings Flexport’s post-money valuation to over $8 billion.
Flexport will use the capital to accelerate development of its technology platform for global logistics and continue building an ecosystem that’s efficient, transparent, and inclusive – everything that logistics isn’t today. The investment will also allow the company to continue to expand into new geographies and markets, and further the logistics tech ecosystem by investing in and partnering with new companies in the space.
“The global pandemic and the pressure it put on global supply chains has made the transportation of goods — something many people took for granted — a daily pain point,” said Ryan Petersen, founder and CEO of Flexport. “This investment signals that the market recognizes the need for a tech-enabled logistics ecosystem that has the visibility and resilience to handle unexpected challenges of any scale.”
The raise follows years of uninterrupted growth for the company, particularly in the last twelve months: Flexport’s revenue more than doubled in 2021 as it moved nearly $19B in gross merchandise for its clients across 112 countries.
“Global trade is facing historic challenges, which demand innovative approaches that address both the current difficulties and more systemic issues,” said David George, General Partner at Andreessen Horowitz. “Flexport’s platform, business model, and data-driven insights together uniquely position the company to continue making a substantial impact on this multi-trillion dollar industry.”
Bob Swan, Growth Operating Partner at Andreessen Horowitz, will join Flexport’s board of directors, and representatives from Shopify and MSD Partners will join as board observers.
“At Shopify, we see first-hand the challenges millions of entrepreneurs face when running their businesses, with logistics being one of the most daunting complexities in commerce today,” said Bram Sugarman, Director, Product Acceleration at Shopify. “We are so inspired by the progress Flexport has made in this critical area and are excited to support them in their ambitious mission to modernize the supply chain, breaking down barriers to trade for businesses everywhere.”
“Flexport’s extraordinary team, led by a strong founder in Ryan Petersen, is bringing to bear deep industry knowledge and critical technology capabilities in building a logistics sector leader,” said Gregg Lemkau, CEO of MSD Partners. “This investment will help accelerate and expand the innovation that will benefit the broader trade ecosystem.”
The company expects the financing to close in the first quarter subject to customary closing conditions, including the receipt of regulatory approvals.
We believe trade can move the human race forward. That’s why it’s our mission to make global trade easy for everyone. Flexport is the platform for global logistics—empowering buyers, sellers and their logistics partners with the technology and services to grow and innovate. Companies of all sizes—from emerging brands to Fortune 500s—used Flexport technology to move nearly $19B of merchandise across 112 countries in 2021.
About Andreessen Horowitz
Andreessen Horowitz (a16z) is a Silicon Valley-based venture capital firm that backs bold entrepreneurs building the future through technology. The firm is stage agnostic, investing in seed to late-stage technology companies across consumer, enterprise, bio/healthcare, crypto, and fintech. a16z has $19.2 billion in assets under management across multiple funds. See portfolio companies here: https://a16z.com/portfolio/.
Shopify is a leading provider of essential internet infrastructure for commerce, offering trusted tools to start, grow, market, and manage a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for reliability, while delivering a better shopping experience for consumers everywhere. Proudly founded in Ottawa, Shopify powers millions of businesses in more than 175 countries and is trusted by brands such as Allbirds, Gymshark, Heinz, Tupperware, FTD, Netflix, FIGS, and many more. For more information, visit www.shopify.com.
About MSD Partners
MSD Partners, L.P. is a leading investment firm focused on maximizing long-term capital appreciation across its core areas of investing expertise – Credit, Growth, Private Capital and Real Estate. The Firm deploys capital on behalf of Dell Technologies founder and CEO Michael Dell and his family, as well as other like-minded, long-term-oriented investors. MSD Partners, which operates from offices in New York, Santa Monica and West Palm Beach, manages in excess of $20 billion. For further information about MSD Partners, please see www.msdpartners.com.