CloudTrucks, the virtual trucking carrier that empowers independent truck drivers, has closed a Series A funding round of $20.5 million, led by Caffeinated Capital with participation from Craft Ventures, Khosla Ventures, SciFi VC, Kindred Ventures, Abstract Ventures, and Better Tomorrow Ventures. It also launched a first of its kind payments product - CT Cash - to help truckers manage payments.
The CloudTrucks app helps truck owners and operators efficiently manage their businesses with technology targeted to the unique needs of their industry. A “business in a box” for truckers, CloudTrucks empowers independent truck drivers to optimize their driving schedules for better pay rates, maximize their revenue and cash flow, while reducing their operating costs.
“The trucking industry is truly the backbone of America, yet small independent truckers are at a major disadvantage due to lack of technology solutions and increasing operating costs, such as insurance and maintenance,” said Tobenna Arodiogbu, founder and CEO of CloudTrucks. “We are creating a seamless payment process similar to what Square has done for small businesses: we empower truck drivers who want to be independent and help them develop strong relationships with vendors [truck rental and leasing companies, insurance, brokers and shippers].”
In addition to closing a new round of funding, CloudTrucks launched a first of its kind payments product, CT Cash. CT Cash is a free instant pay and cash card product designed for truckers and developed in collaboration with Visa. CT Cash helps truck drivers on the CloudTrucks network manage their cash flow and payments on big-ticket items and everyday purchases such as fuel and maintenance. CT Cash will allow drivers to get paid instantly and use the CT Cash card without having to cash out to their external bank accounts.
With CT Cash, drivers have instant access to their funds and full transparency with an activity feed on the CloudTrucks app. They can also use the app to track all of their spending, request cash advances for jobs, and much more. The card is free, instant access to funds is free, and CT Cash only costs 2% for cash advances issued before the completion of a delivery.
“CloudTrucks is bringing digital transformation to the trucking industry and hopes to improve the financial health and everyday business operations of hundreds of thousands of truckers. The company is already demonstrating significant growth since the platform launched in May,” said Ray Tonsing, Founder and Managing Director, Caffeinated Capital.
CloudTrucks intends to use the new funding to accelerate product development and recruitment of top talent in data science, engineering, operations, and sales.