Supply chain disruptions – triggered by factors such as increases in demand, high transportation costs and pandemic-related lockdowns – are expected to continue into next year, experts predict. Businesses bear the brunt of the impact, with 36% of small businesses responding to a 2021 US census survey noting that they have experienced delays with domestic suppliers. It was expensive. According to a 2020 Statista survey41% of automotive and transportation industry executives said their company lost between $50 million and $100 million due to supply chain issues, a figure that likely climbed higher because.
There’s no simple solution, but an emerging cohort of startups are pushing software as a potential way to anticipate and respond to market shocks. A, Tive, provides supply chain visibility insights that apparently help companies manage the location and status of their shipments in transit. Tive today announced it has raised $54 million in a Series B funding round led by AXA Venture Partners with participation from Sorenson Capital, Qualcomm Ventures, Fifth Wall, SJF Ventures and Floating Point Ventures, which CEO Krenar Komoni credits the company’s growth over the past. year.
“[Our annual recurring revenue is] $29 million and projected to be $50 million before the end of the year,” Komoni told TechCrunch via email, adding that the latest investment values Tive at $300 million (post-money). He says the startup acquired more than 200 new customers in 2021, accelerating Tive’s plans to expand its workforce from 120 people to 300 by the end of 2022.
“The pandemic has brought the topic of supply chains to the forefront not only in logistics departments, but also on boardrooms and corporate dinner tables around the world,” Komoni added. “So that companies can better prepare for supply chain challenges and [remain] competitive while ensuring the availability of products on the shelves, the visibility of their inventory during transport is essential. »
Real-time shipment tracking
Komoni says visibility is an unresolved issue for many companies that rely on the global supply chain. (“Supply chain” can mean many things, but here it is the network between companies and their suppliers to manufacture, assemble and ship physical products to buyers.) Companies use visibility data to, among other things , prevent stock ups in places that don’t need inventory. But according to Konomi, most tracking is done manually through loose systems of emails, spreadsheets and phone calls.
A statistic survey taken before the pandemic revealed that supply chain leaders believed visibility was the biggest challenge they faced. Drive the point home, a 2017 survey by GEODIS, the transport and logistics company, showed that only 6% of companies believe they have complete visibility into their supply chains.
This has led companies to increase spending on supply chain software in recent months. “[There is a] lack of time and underutilization of labor which demands operational leverage, especially in this industry,” Konomi said.
Tive — which Komoni, a chip designer by trade, co-founded in 2015 — offers cloud-based software, sensors and services to track shipments as they move through the supply chain. The company’s hardware can log location as well as metrics such as temperature, humidity, shock and light exposure, while its software allows senders to create profiles, set alerts customized and use an API to pull data into existing archiving systems.
“For the data maker, [our technology] means they finally have… data on where the company’s shipments are at any given time, and for the technical decision maker, it means they can easily access that data through our platform or APIs , or we can push them to various business information tools that they might use on a day-to-day basis,” Komoni continued. “[We’re working] on creating seamless experiences with our… software offerings, especially around collaboration between all supply chain actors.
Currently, Tive’s customer base includes 350 companies in industries including consumer packaged goods, logistics, products and retail, Komoni said. Tive says one of the largest logistics companies in the world uses the platform to track pharmaceutical shipments across the globe.
But if investors are behind Tive, at least judging by the robustness of its Series B, there is no shortage of competition. Last year, $11.3 billion was risk financing for supply chain startups including Sensitech, Emerson and Project44, which raised $202 million in June in an investment led by Goldman Sachs.
Going forward, Tive will have to prove that his solution sets him apart from the rest of the pack. Komoni says the company is taking steps to achieve this, such as introducing a 5G-connected tracker designed for pharmaceutical shipments and pursuing “technology-related” mergers and acquisitions.
“[The latest investment] mainly going to be used for land grabbing and expansion opportunities,” Komoni said. “[It’ll] fuel Tive’s rapidly growing international presence with expanding global sales and marketing initiatives. Additionally, it will accelerate the development and introduction of next-generation solutions and services and bring actionable supply chain insights and 24/7 monitoring to the market.
Existing investors RRE Ventures, Two Sigma Ventures, NextView Ventures, Hyperplane Ventures, Broom Ventures and Supply Chain Ventures have also invested in Boston, Massachusetts-based Tive’s Series B. The company has raised $79 million to date.