Home Artificial Intelligence Overhaul, which taps AI to secure physical supply chains, raises $73M in equity and debt

Overhaul, which taps AI to secure physical supply chains, raises $73M in equity and debt

Overhaul, which taps AI to secure physical supply chains, raises $73M in equity and debt

Businesses depending on the physical supply chain face various potential roadblocks. Customers expect fast deliveries with visibility into each step, but costs — including transportation and raw materials costs — are rising due to inflation and other aspects. Meanwhile, there’s a talent shortage, particularly in areas like logistics and operations management, and technical barriers to keeping track of inventory.

Aiming to assist overcome just a few of the challenges, Barry Conlon and David Broe co-founded FreightWatch, a logistics security services company that they later sold to produce chain visibility platform Sensitech in 2012. After the sale, Conlon and Broe say that they saw a spot available in the market to handle cargo theft in a more progressive way, harnessing data, telemetry and software.

“Supply chain was moved to the front pages of the newspaper, amplifying the industry with pain points right within the highlight,” Conlon told TechCrunch in an email interview. “It proved how fragile supply chains are, especially when things go unsuitable. It forced firms to shift their primary focus to greater transparency and resiliency to course correct immediately, while consumers demand more visibility and expect all brands to deliver the ‘Amazon’ experience.”

So in 2016, Conlon and Broe co-launched Overhaul, which provides visibility software that attempts to anticipate and mitigate freight shipping delays. Using real-time operational and behavioral data, Overhaul provides alerting and performance monitoring alongside basic organizational tools like checklists.

In a show investors are buying into the vision, Overhaul today announced that it raised $38 million in a Series A round led by Edison Partners, with participation from eGateway Capital, StepStone Group and TRM Ventures. Overhaul, as well as, secured a $35 million loan from Stifel Bank, bringing the startup’s total raised thus far to just below $100 million.

Conlon says that the money can be used primarily for R&D and customer acquisition efforts. “We’re committed to keeping our investment requirements low, maintaining capital efficiency and to realize profitability in 2023, setting us other than our competitors and others within the industry,” he added.

Overhaul’s monitoring dashboard. Image Credits: Overhaul

Overhaul doesn’t exist in a vacuum. Tive, a startup developing supply chain visibility tools, raised $54 million last April. Altana, one other rival supply chain visibility platform, bagged $100 million just just a few months ago.

What differentiates Overhaul is a powerful emphasis on AI and machine learning, Conlon asserts. The platform pulls in all available in-transit telemetry and contextual data, which Overhaul’s data scientists use to construct and train AI models for a variety of various purposes. For instance, Conlon says, considered one of the models can detect when a cargo load’s security is in danger and alert a security operations team in addition to law enforcement.

“Our platform can ingest complex datasets with zero need for brand spanking new architecture or data structure,” Conlon said. “Within the visibility space, firms like Project44 and FourKites have large ambitions but we offer a novel solution with our risk management capabilities that set us apart.”

Regardless of the case, Overhaul appears to be growing healthily, with a customer base that now totals over 350 firms. Conlon forecasts that annual recurring revenue will reach $90 million by the tip of the yr as Overhaul inches its way toward profitability.

One step toward those growth goals was Overhaul’s acquisition of SensiGuard security services from Sensitech in February. Along with bolstering Overhaul’s platform with visibility and risk monitoring tech, the acquisition prolonged Overhaul’s book of business, adding customers within the tech and pharma industries, while extending Overhaul’s geographic footprint to Brazil, Mexico and the Czech Republic.

One niggle is likely to be securing the following round of funding — not necessarily by any fault of Overhaul. There’s evidence to suggest that provide chain startups, once the darlings of VCs, are less attractive than they once were. According to PitchBook, global supply chain tech startups raised roughly $9 billion in Q2 2022, down 39% from a yr earlier.

Conlon tried to guarantee us that Overhaul hasn’t been massively impacted by the macroeconomics — no less than not yet. He pointed to the corporate’s robust workforce, which now numbers over 650 thanks partially to the SensiGuard acquisition.

“Overhaul has a sustainable model with best at school metrics through customer validation and an enterprise rolodex in pharma, healthcare, technology, 3PLs and food services,” Conlon continued. “We’re playing offense while a lot of the market is reducing investment to increase the runway.”



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