OneRail completes significant Series B round in turbulent market; sees unprecedented demand for last mile logistics modernization, signaling massive growth
On the heels of record growth, OneRail completes a $33 million Series B funding round, co-led by Piva Capital and Arsenal Growth Equity. Shippers continue to re-evaluate last mile logistics with a more strategic eye, based on a multitude of factors, including providing a superior shipper-branded customer experience, increased dependability and delivery speed, and cost containment, while meeting sustainability objectives. Supply chain transformation has become a catalyst for competitive advantage for shippers of all types and OneRail replaces siloed legacy systems and manual processes (Excel, VRS, TMS, etc.) to leverage a virtuous cycle of transportation performance data — driving measurable improvements in affordability, dependability, speed and sustainability for its customers.
OneRail’s comprehensive last mile solution is anchored by its delivery operating system, which automates last mile logistics, intelligently selecting the right shipping mode and courier or carrier network to optimize every order. OneRail’s delivery fulfillment platform is directly connected to an unparalleled real-time connected network of nearly 10 million drivers, which is supported by its Exceptions Assist™ operations layer — a USA-based exceptions management team available 24/7 who actively get ahead of delivery issues before they occur. With an on-time delivery rate of more than 98 percent, OneRail has firmly established itself as the go-to provider for an expanding range of industries, including retailers, healthcare networks, wholesale product distributors, and construction and materials distributors alike.
“Since our Series A round in 2021, we’ve grown revenue year-over-year by 312 percent and have expanded service to over 330 U.S. cities,” said OneRail CEO and founder Bill Catania. “As the connective tissue between our customers, courier networks and consumers, our delivery fulfillment system is currently transacting over 12 million data calls per minute, producing a mountain of data which is further unlocked through this growth round of funding, helping our customers achieve greater efficiencies, new fulfillment capabilities and corporate sustainability objectives.”
Read More: SalesTechStar Interview with Justin Long, Executive Vice President of Operations at Paycom
“Having invested throughout the e-commerce ecosystem, in companies such as Cart.com and Orderbot, we believe OneRail’s robust technology platform, coupled with our confidence in its team, vision and strategy, will transform the last mile logistics sector.”
OneRail will leverage this funding round to develop a multitude of new data-driven platform capabilities focused on improving the dependability, affordability, and sustainability of last mile logistics. In addition to the development of new capabilities, OneRail also intends to greatly expand its sales, marketing, and solution engineering teams to meet increased shipper demand for more efficient last mile solutions.
“OneRail is in a pivotal position to help solve last mile issues that plague companies and consumers,” said Adzmel Adznan, co-founding partner with Piva Capital. “As shifts in consumer behavior become more demanding, there is a need for dependable, affordable and sustainable fulfillment solutions, especially in the underserved segment of B2B and industrial deliveries. OneRail’s market understanding and execution is second to none — we are delighted to partner with the team, and look forward to seeing what’s next.”
One such B2B supply chain customer is American Tire Distributors (ATD). “OneRail has enabled ATD to provide our tire retailers across the U.S. with additional last mile delivery services to meet their consumers’ needs,” said Stuart Schuette, president & CEO of ATD. “As their first enterprise customer, we have enjoyed working with the OneRail team to evolve and grow their service offerings together. We are excited to continue solving the ever-changing demand and last mile delivery solutions that meet the needs of the replacement tire and automotive aftermarket industries.”
Read More: Where Deals Go To Die. Closing the Buyer-seller Gap
The funding builds on a successful 2022 that saw OneRail’s platform deployed from over 10,000 unique shipper locations, debut at #48 on this year’s Inc. 5000 list, and named to the FreightTech 100 for the second year in a row. OneRail’s Logistics Partner Network, a managed marketplace that seamlessly benefits shippers and courier businesses, grew by four million, up 66 percent year over year. With nearly 100 team members based in Orlando, Fla., OneRail caught the eye of Arsenal Growth Equity, also based in Orlando.
“OneRail’s growth over the past 24 months is validation of their differentiated supply chain solution for the last mile,” stated Arsenal Growth Equity Founding Partner John Trbovich. “Having invested throughout the e-commerce ecosystem, in companies such as Cart.com and Orderbot, we believe OneRail’s robust technology platform, coupled with our confidence in its team, vision and strategy, will transform the last mile logistics sector.”
Signifying the strength and confidence in OneRail’s solution, additional investors include Trimble Ventures, the corporate capital venture fund of Trimble, a global leader in construction, agriculture and transportation technologies; ATD; as well as existing investors Ironspring Ventures, Las Olas Venture Capital, Bullpen Capital, Triphammer Ventures/Alumni Ventures Group, Gaingels and Mana Ventures. The latest investment brings the company’s total funding efforts to $54.5 since announcing its Seed Round two years ago.
