Gold Coast company logistics startup CartonCloud has raised $12 million as it looks across the Pacific to grow.
MA Financial has backed the software-as-a-service (SaaS) company’s vision to expand into Canada and the United States.
It’s the first time CartonCloud has taken on institutional capital, having previously raised $1 million in 2017 from High-Net-Worth individuals in 2017, alongside a $1 million grant through the Queensland Business Development Fund.
As well as the North American expansion, the business is looking to continue development of its logistics software capabilities.
CartonCloud’s software allows warehouse, transport and third-party logistics businesses to compete against major industry players using an affordable tech platform to manage inventory, warehousing and transport.
CartonCloud’s management systems allows SMEs across B2B and B2C to enhance their operations with better integrations, flexible and efficient workflows, enhanced recipient experience (for last mile providers), automated data entry and admin.
The company now has more than 350 customers, predominately in Australia and New Zealand, and has fielded significant international interest over the last 18 months.
Over the last four years, CartonCloud has posted 45% annual growth. The team now consists of more than 40 staff, mostly software developers.
CEO and founder Vincent Fletcher said the MA Financial investment is a significant milestone for the software company, which began development in 2012 in a cold store and freight business in Sydney’s western suburbs.
“We now have the ability to significantly increase our headcount, fast-track development to roll out new features and expand to North America,” he said.
“Entering the massive US logistics industry and building a team there opens up extraordinary opportunities for CartonCloud to secure new customers, build new industry partnerships and continue to improve our product for all of our global customers.
“The raise enables us to capitalise on the significant interest we have received from prospective customers in the United States and Canada and seize new opportunities.”
Fletcher said they’re also looking to ramp up research and development, as well as expanding the team. The cash injection also gives the business the ability to roll out new features and product updates sooner.
“Our growth and the success of the CartonCloud software comes from a deep understanding of the key issues and trends impacting our industry,” he said.
“CartonCloud is built to be the solution for the pain points in our industry. We are dedicated to constantly increasing our software’s functionality to allow SMEs to streamline their workflow, optimise operations to get greater yield from the resources they have, and effectively plan for the future.”
MA Financial’s Growth Capital investment director Will Botha said CartonCloud was an excellent example of a mission-critical software solution.
“CartonCloud is 100% focused on customer value,” he said.
“We are pleased to support the next phase of their growth.”