Rose Rocket – a SOC II compliant cloud-native provider of transportation management software (TMS) for trucking companies and 3PLs – recently announced that it has closed $38 million USD in Series B funding, bringing the company’s total funding to date to $69 million USD. Scale Venture Partners led the equity round with continued participation from current investors Addition Capital, Shine Capital, Scale-Up Ventures, Funders Club, and Y-Combinator. The funding will be used to accelerate the company’s expansion into larger fleets in the enterprise, as well as to further accelerate its investments in product development and network collaboration efforts to serve its rapidly growing customer base.
The transportation industry generates more than $800 billion in revenue a year, and yet it has been left behind by the major technological improvements of the past 15 years. And trucking and logistics companies are faced with outdated solutions to solve today’s most pressing challenges: capacity, visibility, supply chain disruptions, and labor shortages.
Rose Rocket has been helping companies navigate with modern technology that bridges the gap in visibility and collaboration. For example, its network-centric TMS optimizes existing resources for carriers and brokers, reducing the need to rely on scaling assets for growth. It also unifies stakeholders on one platform, ensuring streamlined visibility and transparency for proactive exception management throughout the supply chain. Its network efforts have been validated, having seen a 47 times growth in the scale of the network since the last funding round.
In an industry where other TMSs have been just starting to migrate to cloud, Rose Rocket is cloud-native, with a product-led motion that focuses on user experience over costly and heavy-handed implementation processes. And this enables the industry a lower barrier to entry when it comes to TMS technology, ensuring that neither price nor user education would stand in the way of effective software adoption. Plus it is also reliable and secure. In fact, the Rose Rocket platform recently achieved SOC2 compliance – an accomplishment that allows customers to have peace of mind, especially in the middle market and enterprise space.
Rose Rocket’s value proposition clearly resonates. And over the past year, the company has grown to serve all fundamental modes of for-hire transportation, from brokers and 3PLs, to truckload and LTL carriers, even supporting several large enterprise carriers with highly specific business process requirements. Serving a wide range of business models from 2 trucks to 2000 allows Rose Rocket to build solutions that mirror the needs of the industry with targeted and buildable offerings. This ultimately lays the foundation for better collaboration between the entire transportation industry, solving capacity and labor challenges in the long run.
KEY QUOTES:
“Rose Rocket is a special place and product. We have built a community of freight professionals and customers that are dedicated to elevating the entire industry to operate at a higher level. Our network TMS product is the first of its kind, and our ability to connect all corners of our customers’ supply chain is creating a tidal wave of adoption and change in our industry. We’re excited to enter the next phase of our growth and take our winning playbook into the enterprise.”
— Justin Sky, CEO and Co-founder of Rose Rocket
“Within the massive transportation and logistics industry, the mid-market and enterprise operate with highly custom workflows, and no two companies are the same. The TMS that wins in this space must be able to accommodate for changes in how companies work. Rose Rocket stands alone in its ability to serve companies of all sizes, bringing together everyone in the freight network. Its platform can fundamentally shift how transportation companies run at a time when help is desperately needed.”
— Alex Niehenke, general partner at Scale Venture Partners
