Transfix Raises $40 Million in Series F Round Co-led by NEA

Jonathan Salama

New York-based Transfix, which runs an AI-driven logistics platform to enhance supply-chain efficiencies, has closed a $40 million Series F funding round, led by New Enterprise Associates (NEA) and G Squared, with participation from California’s Canvas Ventures.

According to FreightWaves, Transfix had initially sought to raise $50 million at a valuation of about $400 million. In 2020, it had been valued at $940 million.

CEO Calls for Focus

Founded in 2013 by the trio of Jonathan Salama, Drew McElroy and Prabhat Supekar, the company was led until 2020 by McElroy, who previously spent nearly two decades at Priority Distribution. In 2020, McElroy handed the reins to Lily Shen, a former Canvas Ventures executive in residence. Salama, an engineer, was named CEO in March. Shen would continue as an advisor to Salama and the company, Transfix said.

“There is work to be done and we will continue to keep our heads high, support one another, and keep freight moving,” Salama, who was previously the company’s chief technology officer, said on LinkedIn after the funding round.

“Since day one, we have been relentlessly committed to optimizing, improving, and future-proofing our core business: our tech-enabled brokerage and software solutions for shippers and carriers,” said Salama, who previously worked at Gilt Groupe. “By staying focused, we continue to build momentum despite one of the most challenging markets in freight history. I am incredibly proud to be a member of this transformative and inspiring team.”

‘Intelligent Freight Platform’

Transfix has developed an “Intelligent Freight Platform,” which helps companies take “empty miles off the road” and optimize supply chains. Currently, the platform connects shippers to nearly 30,000 carriers with real-time, freight matching.

“We believe that Transfix delivers innovative solutions that help companies optimize in today’s freight market, and will provide continued value into the future,” said Carmen Chang, partner and head of Asia at NEA. “Our investment represents our ongoing confidence in the company’s strategy and leadership, and we are looking forward to a continued successful partnership.”

“We have been continuously impressed by Transfix’s resilience, determination, and innovation,” said Larry Aschebrook, founder and managing partner of G Squared, which has offices in Miami, Fla., Greenwich, Conn., and other U.S. cities. “They don’t get side-tracked by ‘shiny object syndrome’. They, instead, build and refine against deeply-researched customer needs, and iterate to prepare for the future.”

NEA Has Raised over $26B

NEA, headquartered in Menlo Park, Calif., has offices in Chevy Chase, Md., Timonium, Md., and New York. Over its lifetime, the venture firm has raised over $26 billion and made more than 2,000 portfolio investments.

In 2022, NEA raised over $5 billion via two funds, according to a report in Axios. One focusing on early-stage ventures, called New Enterprise Associates 18, raised $2.8 billion from SD Ventures and Cathay Life Insurance. The second fund eyeing growth-stage companies raised $2.3 billion.

The venture firm did not confirm the Axios report. In March, it had said that it closed on “$3.6 billion for its latest fund, bringing the firm’s committed capital to nearly $24 billion over its 42-year history.” The fund is NEA’s largest to date and will be invested across a broad range of technology and healthcare sectors, it added.