ImpactAlpha, August 21 – The US supply chain depends on small businesses: the more than 95% of trucking companies in the US operate fleets of 10 or fewer trucks.
Channel19 founder Tony Singh came from a trucking industry family in India, and noticed that small fleet owners in the US faced many of the same business challenges. The startup makes business management tools for refrigerated truck operators that allow them to manage loads, plan routes, and handle scheduling, tracking, invoicing and payments. It also offers embedded financing to help operators manage their cash flows.
The Fremont, Calif.-based company secured $2.7 million from Augment Ventures, Accion Venture Lab, TMV, Overton Venture Capital and Refashiond Ventures, as well as several angel investors.
This month’s bankruptcy of trucking giant Yellow Corp. further exposed vulnerabilities in US logistics and supply chains.
“Channel19 is providing customers with a simple and affordable way to accelerate cash flow. We’ve seen that without a solution like this, truckers instead turn to predatory, long-term contracts with companies that layer on hidden fees,” said Amee Parbhoo of Accion Venture Lab.
The early-stage fintech investment firm, which is known for its emerging markets focus, has six investments in the US and a growing focus on embedded finance.