Logistics tech startup TrueNorth bags $50M in Series B Funding to reshape and disrupt the $514.7 billion trucking industry
The trucking industry is a big component of the global economy. It facilitates the movement of goods and materials from one place to another. The freight trucking market in the U.S. is estimated at $514.7 billion in the year 2021. On the other hand, the global market for freight trucking is estimated at $2.1 trillion in the year 2020 and is estimated to reach $2.7 trillion by 2026.
However, the trucking industry is rife with inefficiencies and challenges but it’s also ripe for disruption and opportunities for startup companies to innovate the space. One of the new companies that is on a mission to reshape the industry is TrueNorth, a San Francisco-based that offers software that helps truckers manage insurance, fuel, and maintenance.
Today, TrueNorth announced that it has closed a $50M in a Series B funding round led by notable early-stage investors Lachy Groom and Sam, Max, and Jack Altman. Other backers include the Flexport Fund, Tribe Capital, Original Capital, K5 Global, 137 Ventures, and Fifth Down Capital, among others.
Founded in 2020 by CEO Jin Stedge and Sanjaya Wijeratne, TrueNorth aims to fix inefficiencies in the independent, yet fragmented industry. TrueNorth develops software that puts “independent truckers under one roof.” While TrueNorth doesn’t lease trucks, it helps truckers have a platform to manage insurance, fuel, and maintenance. The startup also helps truckers with route optimization, dispatch and load coordination, and automated tracking.
In a statement, TruthNorth CEO Jin Stedge said, “Many of our drivers are taking home twice — some even more — than what they did previously. We increase their revenue by helping them find the highest-paying trucking jobs and making it dead-simple to book them.
She added, “We decrease their costs by consolidating all vendors in one place and offering steep discounts on fuel, insurance, and equipment. Operating a single truck costs well over $100,000 a year before the driver gets paid. By offering truckers a single platform to manage their entire businesses, we help them truly understand and minimize their spend.”
TrueNorth, which participated in Y Combinator in 2020, has seen strong organic customer growth in the two years since its founding. In the last six months, the company has grown its revenue by 3.4x as it improved its contribution margin by 64%. It grew its headcount by 67% during that time.
This investment acknowledges the strong progress that TrueNorth has made towards overhauling the way traditional trucking companies have been run for decades.
TrueNorth said that its mission is to give more profits to that truckers. “That’s why we only keep 15% of your gross load amount. How? We use a mix of cutting-edge technology and industry expertise to provide you better service for a lot less money,” the company said on its website.
“Most technology companies entering the trucking space build beautiful products, but don’t solve actual problems the truckers face every day,” says investor Lachy Groom. “TrueNorth focuses on making truckers more money and helps them live less stressful lives by tying everything into a single, consumer-grade platform.”
Mike Tomlinson, a truck driver, and owner-operator said TrueNorth has changed the way he works. “With such a tight cash flow, I was always thinking about getting the next haul. I’d go months without taking any time off for myself. With TrueNorth, I’m seeing the light at the end of the tunnel. I’m not so cash-strapped these days. Pretty soon, it might even make sense to buy a house. It’s time for me to discover fun again.”