By ET Bureau - November 04, 2022 6 Mins Read
project44, the leading supply chain visibility platform, announced today that it raised an $80M funding round led by Generation Investment Management, the sustainable investment management firm, and A.P. Moller Holding, a privately held investment company, based in Denmark. CMA CGM, a global player in sea, land, air and logistics solutions, joined the round along with previous investors Goldman Sachs Asset Management (“Goldman Sachs”), TPG, Emergence Capital, Chicago Ventures, Sapphire, 8VC, Sozo Ventures and Omidyar Technology Ventures.
The round now values project44 at $2.7 billion, up 12% from the valuation of its Series F announced on January 11, 2022. With the company already on a glide path to profitability, the additional funding will drive several key initiatives including measuring and mitigating supply chain emissions globally, across all modes of transportation.
“When uncertainty from supply chain disruptions, inventory costs and economic policy is at an all-time high, project44 continues to deliver lasting business value to our customers,” said Jett McCandless, Founder & CEO of project44. “This latest round of funding will accelerate our ability to connect all parties across the supply chain ecosystem and deliver the highest quality supply chain and emissions visibility data to our shipper, freight forwarder and LSP customers. With these data feeds, our customers are able to outperform their competitors by managing inventory better, delivering an exceptional customer experience and building a more predictable and resilient supply chain. We will continue to deliver incredible value for our customers, no matter what challenges or opportunities 2023 brings.”
Today, project44 helps more than 1,200 companies achieve predictability, resilience and sustainability across their global supply chains. Customers use project44 to ensure on-time delivery of shipments, proactively address supply chain disruptions and move goods more efficiently. With robust growth and financial performance, project44 is on track to profitability without needing to raise additional capital.
So far in 2022, project44 has booked $44M in annual recurring revenue (ARR), bringing the total booked ARR to $134M, posting 70% year-over-year growth. With net revenue retention of 127%, project44 continues to deliver new services and increased value to its customers. This year alone, 358 new customers including Energizer, Anheuser-Busch InBev Europe, Foot Locker and Veyer have signed with project44.
The company has continued to innovate based on user feedback and recently rolled out Movement by project44™, the world’s most advanced visibility platform, which gives shippers, freight forwarders, carriers and logistics professionals a new way to see the supply chain.
project44 is uniquely positioned to measure the carbon footprint of supply chains, which account for 60% of global emissions. In reporting parlance, most supply chain emissions fall under Scope 3: indirect emissions from activities and assets not owned or controlled by the company. Only 16% of companies currently measure their Scope 3 emissions at an advanced level according to the consulting firm Accenture.
This additional funding will enable project44 to build a system for measuring Scope 3 supply chain emissions across all regions and modes of transportation. In doing so, project44 will empower shippers & freight forwarders to optimize cost, performance and emissions together. Emissions visibility will also prepare project44’s customers to meet new carbon reporting requirements under International Maritime Organization (IMO) 2023 and the European Union’s proposed corporate sustainability reporting directive (CSRD), which calls for companies to measure and report scope 3 emissions.
“Despite decades of investment in supply chain technology, Scope 3 emissions largely remain a black box for organizations,” said Joy Tuffield, Growth Equity Partner at Generation Investment Management. “In project44, we see a compelling opportunity to bring rigorous measurement and climate accountability to logistics. Many of the world’s biggest shippers have committed to reducing their emissions in line with the Paris Agreement. Soon, they will have the technology to back their words with action.”
project44’s path to profitability and vision for sustainability reflect the scale of its visibility network. Throughout 2022, the company has taken significant strides to grow that network. To date, project44 tracks more than 1 billion shipments per year. Over 220,000 ocean, FTL, rail, last mile, air and LTL carriers have agreed to project44’s terms & conditions and are transmitting data on behalf of project44’s paying customers. With this latest round of funding, project44 will continue its commitment to provide an open, neutral and secure network that delivers the broadest, deepest and highest quality land, sea, air and rail data to its valued customers. In 2022, project44 significantly invested in and opened new offices in Japan, New Zealand and Australia, creating even more opportunity for network growth.
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“project44 is a leader in supply chain visibility and has demonstrated its ability to add significant value to ecosystem participants, improve supply chain performance, and position the industry for a more sustainable future,” said Chetan Mehta, Head of Growth Equity at A.P. Moller Holding. “We’re pleased to make our initial investment in the company.”
“At Veyer, our goal is to provide customers with the supply chain services they need to run and grow their business,” said John Gannfors, EVP of The ODP Corporation (NASDAQ: ODP) and President of Veyer. “We’re excited about Movement and its potential to unlock even more value for Veyer and our customers. Network visibility and real-time insights will enable us to provide enhanced value for our customers and drive operational efficiencies critical to reliable supply chains.”
“With project44’s real-time visibility platform, we are positioning Arkema to provide the best customer service in the advanced materials industry,” said Jean-Marc Viallatte, GVP Global Supply Chain at Arkema. “Our team will be able to track shipments in real time, keep customers up to date and address disruptions before they prevent on-time delivery. This is a strategic implementation for our company.”
“As an integrated logistics solution provider offering services across all transportation modes, it is vital we provide our customers the real time end-to-end visibility they need,” said Jia Qu, Chief Innovation and Digital Officer at LX Pantos. “With the vast network of countries and customers we serve, we rely on project44 as a trusted partner with the most advanced technology for all modes to meet our global needs. This partnership is a strategic implementation for us that will enable us to deliver the highest customer value.”
“Around the world, supply chains are marked by increased complexities, capacity constraints and demands for more automation and real-time insights,” said Guillermo Muñoz, Assistant Manager of Logistics at Agrosuper. “Meeting those challenges requires a visibility platform that is global in its reach. project44 has proven itself to be a trusted source of global supply chain insights for Agrosuper, and it’s exciting to see their continued geographic expansion across markets.”
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