Shipping logistics startup FourKites logs $13 million in new funding
FourKites, a Chicago-based shipping logistics startup, has raised a $13 million Series A funding round to tie the Internet of Things into trucking.
FourKites builds software to help shippers, logistics providers and freight brokers keep track of trucks, cut down on wait times at loading docks and boost efficiency of loads. The company was founded in 2014 by Mathew Elenjickal, who formerly worked on logistics enterprise software for companies including Oracle and i2 Technologies.
The startup focuses primarily on trucking for now, but plans to widen to work with rail and ocean transportation in the future, as well as shipments that use more than one method of travel.
Data in trucking has been on the rise in recent years, and is set to grow even more, Elenjickal said — due in large part to new regulations affecting truckers.
In 2015, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration mandated that all trucks must use Electronic Logging Devices by the end of 2017. The devices record driving time, engine hours, miles driven and location information. Federal safety regulations require that drivers take breaks and rest to prevent driving while fatigued, and the new rule is aimed at encouraging compliance to those rest regulations.
Other regulations, aimed at promoting food safety, have also spurred the use of sensors to measure temperature, Elenjickal said. FourKites wants to tap into those data sources to do predictive modeling for its customers.
“We can collect all this data from all these different mediums of devices and build applications on top of it,” Elenjickal said. FourKites could then, for example, better estimate a trucker’s estimated time of arrival, or use more accurate data to settle payment with drivers more quickly.
The new funding will help FourKites build those new features, and fuel an expansion beyond North America. Elenjickal said the push to expand has come from customers who have an international presence.
The company employs nearly 40 at its Loop office, and plans to add 100 more jobs in Chicago by the end of 2017, the company said.
Bain Capital Ventures led the funding round. Existing investors Hyde Park Venture Partners and Hyde Park Angels also participated.
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