CloudTrucks, a Nigerian owned startup based in the United States, has secured $6.1 million in a funding round. The round was led by Craft Ventures, Khosla Ventures, Kindred Ventures, and Abstract Ventures.
Excited to be backed by some of the very best investors and operators (and all around good people) including @DavidSacks @evancharles @km @stevejang @ramtinnaimi @iamjakestream @pitdesi @juliadewahl @parkerconrad @vicsingh @lpolovets and many others!
— Tobenna Arodiogbu (@TobennaA) January 30, 2020
The funds will be used to scale truckers business and increase their revenue in the United States.
Trucking is one of the most veritable industries in the United States. The industry generated about $77.0 billion in revenue in the third quarter of 2018 and has about 3.5 million people working as truck drivers.
However, the industry faced several hurdles, with almost 800 trucking businesses going bankrupt due to changes in insurance cost, regulations, and excess supply.
I have been very passionate about the trucking industry for many years. Trucking is the lifeblood of the American economy and most goods (70%) are moved by Trucks! One little known fact is that the industry is extremely fragmented with 97% of fleets operating 20 trucks or fewer.
— Tobenna Arodiogbu (@TobennaA) January 30, 2020
The challenges prompted Tobenna Arodiogbu to launch CloudTrucks, a Virtual Trucking carrier platform that seeks to help truck drivers manage their business and accrue more revenue.
The startup focuses on gaining more revenue for truckers as it aids cashflow and operation concerns for the trucking industry. It will also facilitate money and insurance policies for truckers.
Kanyi Maquebela, one of the investors that contributed to the round, noted that truck drivers account for about 5% of the jobs available in the United States. These spurred its investment in the CloudTrucks; the CEO will capitalize on the niche and help truckers to grow.
With CloudTrucks, truck owners and small trucking companies can easily get the right gains for their services.
Every once in a while you meet a founder who you immediately know you must find a way to work with. @TobennaA is one of those people. So pumped that we are on the journey with @CloudTrucks.
— Kanyi Maqubela (@km) January 30, 2020
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