We are thrilled to announce our participation in OneRail's $42 million Series C.
We've believed in OneRail from the very beginning—leading their seed round in 2020—and are pleased to have participated in every funding round since, including this latest $42 million Series C. We firmly believe in doubling down on our winners.
"From the very beginning, we've believed in Bill's vision to revolutionize last-mile delivery. Leading the seed round was just the start of our journey together. Today, as we announce our participation in the Series C funding, we're excited to continue supporting Bill and the entire OneRail team. Their relentless innovation and exceptional execution have validated our initial conviction and exceeded all expectations. We're proud to stand by them as they pave the way for a more efficient and customer-centric future in logistics."
— Dean Hatton, Founding Partner at LOVC and Board Member at OneRail
Founded in 2018 by husband-and-wife team, Bill and Lisa Catania, OneRail, a is reshaping last-mile logistics with its advanced platform, which leverages artificial intelligence to connect shippers with an extensive courier ecosystem. By automating, optimizing, and controlling the entire delivery supply chain—from the initial demand signal to proof of delivery—OneRail empowers clients to address their final-mile delivery needs effectively. The platform intelligently matches shipments with the most suitable couriers based on cost, speed, and historical performance, minimizing expenses and accelerating delivery times.
With access to over 7.5 million drivers, 250 carriers, and 65 carrier partners unified under one platform, businesses gain unparalleled reach in their delivery operations. OneRail provides end-to-end tracking and dynamic estimated arrival times (ETAs), fostering trust and predictability between companies and consumers. Their 24/7 U.S.-based team proactively manages delivery issues, ensuring customer satisfaction without exposing end customers to behind-the-scenes challenges.
Moreover, the platform enables businesses to offer environmentally friendly delivery options, such as choosing electric vehicles (EVs), aligning with the growing consumer demand for sustainability.
According to Future Market Insights, the market for last-mile delivery software is projected to grow in size from $14.19 billion to $47.73 billion by 2034.
OneRail claims that its service now reaches over 400 cities in the U.S. and Canada and is handling more than 250,000 deliveries a day for around 50 brands.
OneRail also recently acquired Orderbot. The Vancouver-based company, which OneRail bought in June, sells inventory management tools designed to reduce out-of-stocks, split orders, and late deliveries.
"Lisa and I founded OneRail on the premise that there was not a last-mile platform offering solutions for both the upstream and downstream fulfillment issues plaguing retailers and wholesalers," Founder & CEO Bill Catania said. "Our competitors only solve small pieces of the operations puzzle, focusing on individual last-mile delivery capabilities."
"The round is 100% equity, an up round, with a pre-money valuation 120% up from the Series B round two years ago," Bill said. "In addition to our equity raise, we have a $13 million debt facility with Silicon Valley Bank, our partner since our Series A in 2021. We've had several months of free cash flow, and we're projecting profitability in 2025."
As we approach the bustling holiday shopping season, retailers worldwide are gearing up for the surge in online orders that events like Black Friday and Cyber Monday bring. While consumers eagerly await swift deliveries, businesses must meet these expectations amidst significant logistics inefficiencies, particularly in last-mile delivery.
Last-mile delivery is one of the supply chain's most complex and costly segments, accounting for up to 53% of total shipment costs. These inefficiencies become even more pronounced during peak shopping seasons when small, individualized shipments soar. Businesses needing robust last-mile solutions stay caught up to e-commerce giants that offer same-day or next-day delivery, jeopardizing customer satisfaction and market share.
Our Journey with OneRail
Our partnership with OneRail began in 2020 when we led their seed round and joined the board as their first venture capital investor. Even before they had generated revenue, we saw immense potential in their vision to revolutionize last-mile delivery. Our conviction-driven investment was rooted in the belief that OneRail's innovative approach could transform the logistics industry.
Investment Timeline with LOVC:
- 2020: Led the seed round and joined the board as the first VC investor.
- 2021: Participated OneRail's Series A round.
- 2022: Participated in their Series B round.
- 2024: Participated in the Series C round, reaffirming our commitment to OneRail's vision.
Looking Ahead
With the holiday season upon us, the stakes for efficient last-mile delivery have never been higher. OneRail equips businesses of all sizes with the tools to meet and exceed customer expectations. They create a more seamless, efficient, and sustainable delivery ecosystem by leveraging artificial intelligence and a vast courier network.
We are proud to continue supporting Bill Catania and the OneRail team. Their relentless pursuit of innovation, commitment to customer satisfaction, and operational excellence align perfectly with our investment philosophy at LOVC.
Headquartered in Orlando, FL, OneRail's customers include Lowe's (for which it offers same-day delivery) and PepsiCo. This funding round raises the company's total amount raised to roughly $109 million; the new funding will be used for product development and the expansion of OneRail's 162-person team.
Together, we're paving the way for a more efficient, sustainable, and customer-centric future in the logistics industry.
Last mile, delivered!
Learn more about OneRail, explore open roles, and follow their growth at their website and follow them on LinkedIn. Read the full TechCrunch article here.
