Transfix Seeks Funding Amid Valuation Downturn

Transfix struggles to raise $50M Series F at 60% reduced valuation, amid weak freight market conditions.

Transfix Seeks Funding Amid Valuation Downturn
Transfix reportedly has struggled to close a Series F round after failing to go public. (Photo: Jim Allen/FreightWaves)

Transfix, a digital freight marketplace, is seeking to raise a $50 million Series F at a $376 million valuation, a stark 60% decrease from its $940 million valuation from its previous funding round in March 2020. The drop is said to be a result of market forces, with the company reportedly securing $30 million of the target sum from New Enterprise Associates (NEA) and G-Squared, while still seeking the remaining $20 million from additional investors.

Chadd Olesen, CEO of AVRL, candidly shared his insights on the valuation issues faced by tech-enabled logistics companies like Transfix.

Attempted Recovery

Transfix's push for private financing comes after the company decided not to go public in a special purpose acquisition company (SPAC) combination with G-Squared. The hope was to achieve a $1.1 billion valuation through the public offering. However, despite the downturn, Transfix remains hopeful of closing the funding round in September. The company's leadership also saw a change in March, with CEO Lily Shen stepping down and co-founder and CTO Jonathan Salama taking over.

Source: FreightWaves

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