Dynamo Dispatch (15/05/23)
Issue 237 | Improvin’, 8fig, Otto Motors
Dynamo Dispatch. A weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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Weekly Commentary 💭
🎓Congratulation to our Venture Fellow Pujeeth Meruva who graduated from Purdue University on Sunday! Shout-out to all the new graduates and best of luck as you embark on new adventures.
💥We’re pumped to announce our latest investment: Stockholm-based start-up Improvin’. Founded in 2022 with the goal to help food brands become more sustainable, the climate tech’s sustainability performance platform helps customers quantify, verify, and report emissions, with the ultimate goal of making the future of food more sustainable.
We led the seed round with Pale blue dot, and to quote our own Jon Bradford: “Improvin’s deep integration into the agri-food supply chains provides a granular understanding of emissions and a unique insight into reducing emissions and boosting biodiversity…We’re excited to be part of this journey and looking forward to supporting Improvin’ scale globally.”
Read more in our Fundraises and M&A section below.
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We Are Dynamo,
Santosh, Jon, and the rest of the Dynamo team (thanks to Anneli for the editorial support this week)
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Supply Chain 📦
⭐Walmart: Unique Ecosystem Of Suppliers To Help Walmart Export Goods Worth $10 Billion From India Annually By 2027. The company's President and CEO, Doug McMillon, expressed commitment to long-term investment in India and praised the Indian suppliers for their quality and affordable products. Walmart's leadership engaged with various stakeholders, including suppliers, merchants, and small businesses, as part of its initiatives in India. This announcement follows Walmart's endorsement of India's growth as a manufacturing hub in December 2020, when it pledged to triple its exports from the country. This shift speaks to a global trend in “friendshoring” out of China to countries that are geopolitical allies. For more on this phenomenon, read Foxconn Purchased Massive Plots Of Land In India & Vietnam For New Factories and China Finally Has a Rival as the World’s Factory Floor.
America’s Factory Boom Drives Sales Surge For Excavators, Steel And Trucks. Backlogs of orders resulting from supply chain disruptions during the pandemic and increased demand from new factories have bolstered the manufacturing sector. Caterpillar, for example, reported a 17% rise in quarterly sales and a 26% increase in profit, while Nucor's steel-products business saw a 42% rise in profit. Rockwell Automation also experienced a 26% increase in sales, driven by demand from electric vehicle and semiconductor plants. Although the truck industry is currently strong, a decline in new heavy-duty truck orders suggests concerns about the future. For more check out Largest Ever Us Solar Factory Shows Rapid Pivot To American Made.
Alibaba logistics arm eyes up to $2B Hong Kong IPO. Alibaba's logistics subsidiary, Cainiao Network Technology, is planning to raise $1-2B through an IPO in Hong Kong, according to sources. The IPO is expected to be launched in early 2024 and is part of Alibaba's broader plan to split its business into six units, with many of them exploring capital raisings or market debuts. The potential IPO of Cainiao and other spin-off units is seen as a positive development for Hong Kong's capital markets, which have seen sluggish fundraising activities recently.
Softer Peak Season Import Forecast Trending Toward Pre-Pandemic Levels: US Retailers. US retailers predict that imports during the peak shipping season this year will be lower than in 2022 but closer to pre-pandemic levels, indicating a steady but not explosive demand from consumers, according to the Global Port Tracker (GPT) report. The forecast shows a decline in imports from May to September, with May imports projected to be down 23.5% compared to the previous year. In addition to reduced consumer demand, high inflation and bloated inventories are also affecting import volumes, while ongoing challenges such as trucker shortages and labor contract negotiations continue to impact port operations. Read more on this at National Retail Federation Lowers US Consumer Good Import Forecast For First Half Of 2023 and California’s Cargo Losses Risk Job Drain From Logistics-Reliant Economy.
Freight Forwarders: Architects Of Global Supply Chain. Freight forwarders are essential in the supply chain as they coordinate the movement of goods and ensure timely delivery. Their expertise and knowledge help overcome logistical challenges and navigate global trade complexities. Despite the digitization of the industry, freight forwarders still somewhat rely on creativity and problem-solving skills, as personal interactions remain crucial. Additionally, M&A activities are on the rise as companies aim to expand their global footprint and enter new markets, taking advantage of the stabilizing market conditions and potential opportunities for growth. In other global news, Second Half Of 2023 Holds Challenges For Freight Forwarding Industry and EU Creates Alert System for Semiconductor Supply Chain.
DHL Supply Chain, Locus Robotics Plan To Deploy 5K Robots Worldwide In Deal Expansion. The Locus Origin autonomous mobile robots (AMRs) will be deployed in DHL's warehouses and distribution centers globally by the end of the year. The move is driven by ongoing labor challenges, increased investments, and the growth of e-commerce, and aims to enhance productivity, order accuracy, speed, and efficiency. The partnership between DHL Supply Chain and Locus Robotics began in 2017 and has since grown to include a fleet of 2K assisted picking robots. In more supply chain automation news, read Associated Foods Teams Up With Symbotic For Warehouse Automation and Kraft Heinz Leans On AI To Boost Its Supply Chain Performance.
Mobility 🚗
⭐More Than 2M Toyota Users Face Risk Of Vehicle Data Leak In Japan. It was revealed that data regarding over 2.15M users in Japan, nearly the entire customer base using cloud service platforms, was publicly available from November 2013 until April 2023. The error stemmed from a human error and includes details on identification numbers of vehicles, vehicle locations, etc. for both Toyota and Lexus customers. For similar news, consider ‘Human Error’ Exposed Vehicle Data Of 2.15 Million Toyota Customers For Over A Decade.
Polestar And Volvo Are The Latest Automakers Caught In Software Purgatory. The two manufacturers are now delaying the launch of their next EV due to the shared software development platform. Polestar won’t make its debut in another market until early 2024 while the all-new all-electric Volvo EX90 won’t release until the first half of 2024. For more information, consider checking out Volkswagen Shakes Up Software Arm Cariad — Again and Volvo Cars Adjusts Start Of Production Timing For Volvo EX90.
AI Cameras Are Being Set Up On Highways To Catch Drivers Who Throw Trash Out Of Their Car Windows. UK highways will now have cameras automatically sending images to enforcers, with fines being levied up to €100. The new cameras are part of a trial run by National Highways and will premier in the South East of England, in partnership with a subsidiary of East Hampshire county council. In similar news, check out AI Cameras Are Being Deployed To Hold Uk Drivers Responsible For Littering and Amazon Installs 'creepy' AI Cameras To Monitor More Delivery Drivers, Report Says.
Sweden Is Building The World’s First Permanent Electric Road That Charges Moving EVs. The road will be built by the Swedish transport administration Trafikverket, and designs and construction are expected to be completed by 2025. The electrified road will be on the E20 motorway, running through Stockholm within a busy traffic corridor necessary for the commercial transport of global goods. For more, consider checking out Sweden's Trafikverket Orders Autonomous Electric Ferries and AI To Monitor And Optimise Swedish Road Infrastructure.
Tesla Owners Sue Over Impact Of Software Update On EV Batteries. It claims that the new updates on Tesla’s vehicles violate federal and state laws regarding vehicle driving ranges. The updates cut ranges up to 20% and have now required some owners, who use their vehicles for more long-range journeys, to replace their EV batteries completely which has resulted in costs of up to $15K. To learn more, read Tesla Owners Sue, Say Software Updates Cut Range By 20%, Break Batteries.
Toyota Shareholders Request It Disclose Climate Lobbying Efforts, Fear It’s Missing Out On EV Profits. Because of its long-standing penchant for hybrid vehicles, 3 EU-based asset management companies have now submitted a shareholders request to provide an annual overview of their climate-lobbying efforts. Other climate organizations have begun taking a stronger approach and publicly demanded that Toyota’s new global CEO, Koji Sato, ban fossil-fueled vehicles outright. Learn more by reading 54 Organizations Demand Toyota Shift To EVs Globally As New CEO Steps In and How Toyota Sneakily Spreads Anti-EV Propaganda In Japan.
Fundraises and M&A 💸
💥Improvin’ Raises €3.5M In Seed Funding. Dynamo led the Sweden-based, agriculture sustainability software company’s seed round alongside Pale Blue Dot Ventures. The funds will accelerate the development of the platform and its expansion to Germany, Belgium, France, and the Netherlands.
Prewave Raises $20M In Series A+ Funding. Prewave is a supply chain risk platform that uses its proprietary crawler and data analysis to monitor and assess risks in every phase of the supply chain, providing companies with real-time insights and a dynamic supplier risk score. Funds will be used to double down on its recent growth, expand its headcount, and further develop its technology.
Wingcopter Raises $44M In Funding. Wingcopter is a German startup that specializes in the development of delivery drones for transporting medicine and other goods to remote areas. With the recent financing from the European Investment Bank, it aims to expand its hardware line and launch a new logistics and delivery service using its drone fleet.
UVeye Raises $100M In Series D Funding. The Israeli company develops automated vehicle inspection systems using advanced AI and computer vision technologies. Funds will be used to initiate production of UVeye inspection systems in North America, support sales growth in the U.S., and expand into new markets.
8fig Raises $140M In Series B Funding. 8fig is a US start-up specializing in providing funding and supply chain management tools for e-commerce businesses. The mix of equity and debt funding will be used to invest in small and medium-sized e-commerce businesses and enhance the platform with new features such as improved financial management capabilities and cash flow prediction models.
Mitsubishi Electric Announces Strategic Investment In Otto Motors. OTTO Motors is an industrial division of Clearpath Robotics that provides autonomous mobile robots for material handling in manufacturing facilities and warehouses. The investment will allow Mitsubishi to expand its presence in the industrial automation market and enhance its own factory automation solutions and offerings.
Qualcomm Acquires Autotalks. Qualcomm, the global semiconductor and communication technology company is acquiring Autotalks, an Israeli chipmaker, to integrate its vehicle-to-everything (V2X) communication technology into Qualcomm's Snapdragon Digital Chassis portfolio. Terms of the deal were not disclosed.
Getaround Acquires HyreCar. Getaround is a peer-to-peer car-sharing company that recently acquired the assets of HyreCar, a car-sharing marketplace for gig drivers, with the aim of expanding its network and increasing operational costs. Getaround outbid used car rental dealership Holmes Auto who had agreed to buy HyreCar for $7.75M. Terms of the deal were not disclosed.
Nippon Acquires Cargo-Partner For $1.5B. Nippon Express, the seventh-largest logistics provider in the world, has agreed to acquire Austrian logistics company Cargo-Partner for up to $1.5B, enhancing its global freight forwarding capabilities and expanding its network in Europe. Nippon Express paid €845M in cash for Cargo-Partner and its subsidiaries, with additional cash payments of up to $607M based on the target companies reaching specific financial thresholds.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Customer Onboarding Manager at SVT Robotics in Norfolk, VA.
UAV Test Pilot at Manna in Dublin, Ireland.
Head of Marketing at Solvento in CDMX, Mexico.
Random Statistic Of The Week 📈
💐1-800-Flowers delivered 23M flowers in advance of Mother’s Day. Though belated, a very Happy Mother’s Day to all the moms out there! We enjoyed this logistics deep dive video by WSJ about the complicated mission to coordinate more than 5,000 local florists, a huge network of fulfillment centers, and transport operators, to bring festive bouquets to our neighborhoods.