(Reuters) - Convoy has raised $160 million in a late-stage funding round led by fund managers Baillie Gifford and T Rowe Price Group Inc, valuing the freight network platform operator at $3.8 billion, the company said on Thursday.
The company also raised $100 million from Hercules Capital Inc in a venture-debt investment, bringing the total capital raised to $260 million. It also secured a $150-million line of credit from J.P. Morgan.
Convoy, whose mobile app connects shippers and freight brokers to a network of 400,000 trucks in the United States, said it will use the funds raised to further develop its trucking network technology and scale up operations.
The company plans to invest in its high-demand offerings as well as in its financial services and payments system for the owner-operators and carriers on its network, co-founder and Chief Executive officer Dan Lewis told Reuters.
There are plans to hire more engineers, data scientists and logistics experts for the purpose, Lewis added.
“Currently we have 200 open roles, 50% of which are in our technical organization.”
Convoy’s new investors join a list of notable existing backers such as Bill Gates, Jeff Bezos, Salesforce.com’s Marc Benioff and Y Combinator, the prominent Silicon Valley incubator and startup fund, among others.
While the Seattle, Washington-based company anticipates substantial growth ahead, it does not have any listing plans for now.
“We don’t have anything to announce at this time, but we do believe that this is the most likely path for Convoy in the coming years,” Lewis said when asked about Convoy’s plans for an initial public offering.
Reporting by Sohini Podder in Bengaluru; Editing by Shailesh Kuber
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