Cloud-based transportation management software provider Rose Rocket announced Tuesday it has closed a $38 million Series B round led by Scale Venture Partners with participation from current investors Addition Capital, Shine Capital, Scale-Up Ventures, Founders Club and Y-Combinator. The company has raised $69 million since its inception in 2015.
Co-founder and Chief Strategy Officer Justin Bailie told FreightWaves the company has seen 47x growth since its last raise in 2021 by focusing on product-led expansion.
Related: Rose Rocket raises $25 million for cloud-based TMS
“We believe that software’s effectiveness is determined by the extent of its usage. Change management, especially in the transportation industry with its long-standing nuanced approaches, is a pressing issue to address. Rose Rocket has adopted a product-led growth strategy that allows every user to self-onboard onto the tool. This approach mitigates the risks of business continuity, especially when the industry is witnessing a significant shift in talent and management,” Bailie said.
| Funding details: | Rose Rocket |
|---|---|
| Funding amount | $38 million |
| Funding round | Series B |
| Lead investor | Scale Venture Partners |
| Secondary investors | Addition Capital, Shine Capital, Scale-Up Ventures, Funders Club and Y-Combinator |
| Business goals for the round | Expand into the enterprise fleet market, accelerate product development |
| Total funding | $69 million |
As the company’s customers expand into different markets, Rose Rocket is able to create transparent solutions.
“Rose Rocket recognized that freight isn’t moved in siloes. Rose Rocket’s TMS is built to account for the multiplayer game that is trucking, allowing brokers, carriers, shippers and drivers to communicate and collaborate on one platform,” he said.
The company has also achieved service organization control type 2 (SOC2) compliance — a framework used by third-party technology providers that ensures data is being collected and stored properly.
“This compliance assures our customers that we are doing everything possible to protect their sensitive information. The rigorous SOC2 auditing process focuses on five trust service principles: security, availability, processing integrity, confidentiality and privacy. Achieving SOC2 Type 1 compliance means that we have demonstrated robust controls and safeguards to protect and manage customer data,” said Bailie.
The company disclosed to FreightWaves in February that it was working toward order management for autonomous trucking fleets as well.
Capital deployment
With its funding, Rose Rocket is looking to grow its available solutions and expand into enterprise fleet solutions.
“The funding round is a crucial stepping stone for Rose Rocket’s ambitions, enabling us to scale our network-centric TMS and further invest in product development and user experience for our customers. The Series B will also empower us to expand into the middle market and [larger fleets],” Bailie told FreightWaves.
Bailie went on to explain that the distinct challenges within the supply chain give Rose Rocket an opportunity to prove its solutions’ expertise.
“Recognizing that trucking companies, particularly those with larger fleets, have unique operational patterns, we’re intensifying our efforts on making our TMS more adaptable and personalized,” he said. “Our emphasis lies in ensuring that Rose Rocket’s TMS accommodates individual ways of working, from customizable fields to unique business rules. Our vision is to evolve Rose Rocket into a new generation of software that serves everyone in trucking, from a solitary broker to extensive fleets with thousands of trucks.”
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