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Mobility Innovators

Logistics sector is attracting significant venture capital funding

The logistics and supply chain sectors became the hottest buzzword in 2021. Many new startups are trying to solve logistics problems in various parts of the world. The logistics sector raised $27.5 billion from venture capital firms alone in 2021, an increase of 80% over 2020. In addition, the number of transactions has increased from 777 in 2020 to 913 in 2021.

In the last decade, the investor made a significant investment in e-commerce. The pandemic accelerated e-commerce adoption significantly. The proportion of total global retail sales accounted for by e-commerce increased from 13.6 percent in 2019 to 18 percent in 2020. In short, the pandemic accelerated e-commerce adoption by three to ten years.

GRAPH: eCommerce Share of Total Global Retail Sales 2015-2024

The logistics sector received little funding in past decades. As a result, it was a game of catch-up as the acceleration of e-commerce widened the gap in the logistics sector, which included shipping, freight, warehousing, and so on. Furthermore, the pandemic heightened interest in streamlining logistics networks and increasing distribution network efficiency. Many logistical technology startups are developing tools for operations such as warehouse management, matching freight loads to transportation capacity, and mapping out cost-effective routes to move goods.

List of some big funding rounds in logistics space: