SoftBank’s Vision Fund had led the $1 billion funding round in a freight company Flexport, which made the fund’s investment biggest ever in any of the start-ups yet.
The San Francisco, California-based Flexport, which moves the freight across globe and describes itself as a modern freight forwarder, announced on Thursday last week about the financing deal which it has been expecting to be close in the second quarter subject to the approval of regulators.
SoftBank’s Vision Fund also came up leading an in investment of $200 million in physical storage start-up Clutter only a day before the current funding.
The Vision Fund of worth $100 billion remained investing in fast-moving companies involved in introducing the use new technologies in traditional businesses rather it was food delivery firm DoorDash, ride-hailing Uber or real estate start-up WeWork.
With the current investment, SoftBank is aiming to expand it footprints in freight and cargo services as Flexport not only moves the freight using air, rail, road or ocean to handle the packages but is also familiar with the local custom regulations.
Data provided by Flexport help its customers to analyze costs, container utility and emissions and to keep an eye on their supply chain and Flexport generates that data by appropriately utilizing the technology in the freight business.
Major big players in freight business usually give no or less priority to the smaller LCL shipments, but Flexport’s system also support to such overlook segment of the freight business.
Flexport’s business is growing persistently and that is also the method of SoftBank, with its investments help them to grow faster, Ryan Petersen, Flexport’s CEO said in an interview.
Petersen described the deal as “clean” and “founder friendly” as SoftBank’s managing partner Micheal Ronen will join the Flexport’s board for making investment that involve no additional share preferences.
Though Flexport’s valuation has not been disclosed but according to previous report by Axios , company could be valued around $3 billion.