The company that bills itself as a “business in a box” for truckers has closed a Series A funding round of $20.5 million. CloudTrucks made the announcement on Wednesday (Dec. 16), at the same time that it launched a first-of-its-kind payments product, CT Cash, to help truckers manage payments.
The CloudTrucks app helps truck owners and operators manage their businesses by optimizing their driving schedules for better pay rates, maximizing cash flow and reducing operating costs. CT Cash is a free instant pay and cash card product developed in collaboration with Visa. The company said CT Cash helps truck drivers manage their cash flow and payments on big-ticket items and everyday purchases, such as fuel and maintenance. It allows drivers to get paid instantly and use the card without having to cash out to external bank accounts.
The card gives drivers instant access to their funds via an activity feed on the CloudTrucks app. The app can also be used to track spending and request cash advances for jobs. There is a 2 percent fee for cash advances issued before the completion of a delivery.
“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].”
The round was led by led by Caffeinated Capital, with participation from Craft Ventures, Khosla Ventures, SciFi VC, Kindred Ventures, Abstract Ventures and Better Tomorrow Ventures. CloudTrucks intends to use the funding to accelerate product development and recruitment talent in data science, engineering, operations and sales.