Dynamo Dispatch (2023/11/20)

Issue 259 | Urbanic, Element Energy, Arrival

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 💭

✈️ The Dynamo team will be traversing Europe the two weeks following Thanksgiving. If you or someone we should meet will be attending Slush in Helsinki or are based in London, Berlin, or Paris, please drop us a note!

🦃 Happy Thanksgiving from the Dynamo team! If you’re looking to diversify your dinner table talking points have a listen to Santosh’s recent conversation with Felipe Capella, Co-Founder and CEO of Loadsmart on the latest FoSC podcast.

🥰 Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things supply chain and mobility.

We Are Dynamo,

Madelyn, Derrek, and the rest of the Dynamo team

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Supply Chain 📦

⭐ Walgreens Wants to Become an Online Delivery Hub. Walgreens is shifting its strategy to rely on its network of physical stores, rather than warehouses, for online order fulfillment. The company will have store employees pick and pack items for same-day delivery through third-party apps like DoorDash and Uber Eats. This move follows a trend in the retail industry where companies like Target, Walmart, and CVS Health are using their stores as fulfillment centers to streamline operations and leverage their physical locations for quicker deliveries and better inventory management. This strategy enables retailers to make use of their fixed real estate spend to better compete in eComm, also seen here: Inside Target’s Strategy to Compete With Amazon, Walmart in Fast Shipping.

FMCSA Tightens Regulations to Prevent Fraud by Brokers. New rules for brokers and forwarders — provisions of which would take effect beginning January 2025 and the following year — are being put in place to better protect carriers. The FMCSA is “tightening oversight in five areas of broker financial responsibility as well as consequences for noncompliance: assets readily available, immediate suspension of broker/freight forwarder operating authority, surety or trust responsibilities in cases of broker/freight forwarder financial failure or insolvency, enforcement authority, and entities eligible to provide trust funds for broker trust fund filings.” These updates are intended to cut down on unpaid claims to carriers. Also in regulatory news, A New Canadian Supply Chain Law Places Responsibility on Shippers.

Einride Begins Fully Autonomous, Commercial EV Truck Operations with GE Appliances. Autonomous trucks notched another milestone in their journey to scale as autonomous EV freight developer Einride launched commercial operations with GE Appliances. These middle-mile navigating autonomous trucks are now operating a route between GE’s manufacturing facility and warehouse. This achievement comes a year after the company became the first purpose-built, autonomous electric truck without a driver on board to receive approval from the National Highway Traffic Safety Administration to operate on public roads. These developments reflect the ongoing evolution of the trucking industry’s adoption of autonomy. Related, Frito-Lay Unveils its First All-Electric Truck Fleet in the US and elsewhere in autonomy, Amazon Unveils Heavy-Lifting Warehouse Robot Titan.

Target Forecasts Strong Holiday-Quarter Profit On Lower Inventory Levels, Supply-Chain Costs. Target expects its holiday-quarter profit to exceed Wall Street expectations due to tighter control of inventory and lower supply chain costs. Despite facing challenges such as slowing sales amid inflation and issues such as retail theft, the company posted a smaller-than-expected drop in comparable sales for the third quarter as well as higher margins compared to a year earlier. Decreased freight, supply chain, and delivery expenses were key to this development. The retailer’s efforts to employ disciplined inventory management demonstrates how firms are looking to bring back equilibrium following the extremes of the last couple years, particularly important in a tighter economic environment. On the point of increasing theft, Cargo Theft Incidents Rose 59% in Third Quarter.

Hydrogen Fuel Is Gaining Traction With Truckers. In advance of incoming requirements for emissionless vehicles in California, some operators are taking substantial bets on hydrogen-powered rigs. IMC, for example, expects to be running a fleet of 50 of these vehicles by the end of next year. While many have focused their attentions on battery-cell powered crafts, others are taking a stronger notice of hydrogen powered vehicles, particularly for longer distances. These hydrogen based trucks are able to travel longer distances and have shorter refuelling times than their electric counterparts but fueling infrastructure remains years behind. Costs for both hydrogen fuel-cell and battery-electric vehicles are currently triple the cost of a diesel truck, which California has sought to solve through subsidies and grants in the short-term. In the long term costs are hoped to decrease as production scales, and alongside work to flesh out fueling / charging infrastructure, truckers should face lower barriers to adopting these vehicles. Elsewhere on hydrogen, Japan, South Korea to Build Supply Chain for Hydrogen and Ammonia.

Mobility 🚗

⭐ Hyundai to Be First Automaker to Sell New Cars on Amazon. Hyundai and Amazon have teamed up to allow US auto dealers to sell new vehicles on Amazon's platform, providing customers with an alternative to traditional dealership visits. Starting in 2024, customers can purchase a new Hyundai on Amazon, with options for pickup or delivery instead of going to a dealership. The strategic collaboration signals a transformative shift in the car-buying experience driven by changing consumer preferences and sets the stage for upcoming increased competition in the eComm-driven automotive sector. In other automotive innovation news, Cruise Suspends Supervised and Manual Car Trips, Expands Probe.

A Surprising Player Gets into the EV Battery Game: Saudi Arabia. Saudi Arabia is pivoting to become a major player in oil alternatives by investing in EV battery production and hydrogen-powered vehicles in a move to diversify its economy and build a domestic auto industry. With a target of producing 500K EVs by 2030, Saudi Arabia is also focusing on the supply chain of renewable energy and mining minerals essential for battery chemicals. These investments by the world’s biggest oil producer could significantly impact the landscape of the EV supply chain and contribute to the transformation of the Middle East's economic dynamics. Similarly, Exxon Mobil Plans to Produce Lithium in Arkansas and 280M eBikes are Slashing Oil Demand Far More than EVs.

The Automakers and Suppliers Pushing to Cut Rare Earths from EVs. A rising number of automakers and suppliers are actively developing EV motors that either eliminate or significantly reduce the use of rare earth materials. These include Dysprosium, Terbium, and Praseodymium for the use in magnets, which are predominantly sourced from China. Companies such as Tesla, BMW, GM, Renault, Toyota, and many others are at various stages of implementing rare earth-free or reduced-content EV motors. The shift is driven by efforts to secure a sustainable and diversified supply chain for EV production while addressing environmental concerns associated with rare earth mining. In a different EV segment, This New Electric School Bus Has a 300-Mile Range.

UAW Members Approve 4.5 Year Contract with Detroit's Big Three. Union members at Ford, Stellantis, and GM have ratified a new 4.5 year contract, securing 11% pay increases that scales up to 25% over the deal’s duration after a six-week strike in September and October. Approximately 67% of Ford employees represented by the UAW voted in favor of the contract while just 55% of GM workers narrowly approved the contract. The agreements mark a significant victory for workers and aim to regain benefits lost after the Great Recession - such as reinstating cost-of-living adjustments and protecting the right to strike over plant closures. This reflects a collaborative effort between the unions and automakers that will likely be repeated in future negotiations across various industries. Despite the resolution, Smaller Suppliers Still at Risk as Industry Ramps Up After UAW Strike.

NYC Reveals Plans to Build Air Taxi Infrastructure as Test Flights Hit Skies. New York City Mayor Eric Adams announced plans to enhance the Manhattan heliports to accommodate electric-powered vertical takeoff and landing (eVTOL) aircraft, transforming it into a hub for sustainable transportation. Joby Aviation and Volocopter conducted successful test flights at the heliport, marking the first air taxi flight in the city as other startups have identified potential markets for advanced air mobility services across the US. This signals the growing momentum of eVTOL development, with players aiming for passenger-carrying flights by 2025. For other air mobility news, Hyundai’s Supernal to Build US Plant to Make Flying Electric Taxis and Japan Airlines Could Use H2-Electric Powertrains for Commercial Flights.

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The Future of Supply Chain 🎙️

Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.

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Fundraises and M&A 💸

Gravity Raises Seed Funding. Gravity is an EV infrastructure firm. The company is able to onboard large-scale fast charging without straining the power grid and often without any need for utility upgrades through its Distributed Energy Access Points which directly interface with and augment electrical grids. The funding will enable the company to scale its high-speed charging. Google Ventures led the round.

Pricepally Raises $1.3M in Seed Funding. Pricepally is an eComm grocery store which facilitates same- or next-day delivery of fresh and packaged foods. The funding will fuel Pricepally’s growth beyond the three cities it currently serves in Nigeria as well as allow for the reintroduction of group buying on the platform. The round was led by Samurai Incubate.

Stockoss Raises €4M in Seed Funding. Stockoss is a Paris-based supply chain management and logistics provider. Pi Labs led the round with additional participation from Global Brain, 50Partners, Hart, and Kima Ventures.

Augmentus Raises $5M in Series A Funding. Augmentus provides a no-code robot programming platform for industrial automation. The funding will be used to grow operations in the US, Europe, and greater Asia across multiple verticals. Sierra Ventures led the round with additional participation from Cocoon Capital.

EVenergi Raises $5M in Funding. EVenergi is an electric fleet management software platform which “helps to plan, optimise, and manage the transition to zero emission fleets”. The $5M in funding, part of a larger $10M round target, will be used to fuel the Australian company’s growth into North America. Aligned Climate Capital is leading the round.

Opiwatt Raises $7M in Series A Funding. Opiwatt is helps consumers optimize their energy use for EVs and homes through an energy app and operating system. The capital will be used to expand operations and fuel development efforts. The round was led by Navitas Capital and joined by new investor Skyview Ventures alongside existing partners Google Ventures (GV), Active Impact Investments, Urban Innovation Fund and Thin Line Capital.

SuperCircle Raises $7M in Pre-Series A Funding. SuperCircle is a textile recycling startup which offers a tech and logistics platform to enable brands to collect, sort, and recycle clothing. The funding will be used to “improve logistics infrastructure, accelerate brand partnerships and enable strategic hires across the business.” Radicle Impact and Ulu Ventures co-led the round with participation from Earthshot Ventures, BBG Ventures, Lyra Ventures and Blueprint Ventures.

Zero Emission Industries Raises $8.8M in Series A Funding. Zero Emission Industries is a developer and distributor of power and fueling systems for the maritime sector. The funding will allow the startup to pursue strategic partnerships, scale operations, and meet customer demand. The round was led by Chevron New Energies with participation from Trafigura and Crowley.

Switch Maritime Raises $10M in Series A Funding. Switch Maritime is the developer of hydrogen-powered ferries. The company has raised a Series A to fuel expansion of its fleet. The round was led by Nexus Development Capital.

Tenet Raises $10M in Series A Funding. Tenet is an EV financing platform which offers smart charging for customers. The Series A funding, alongside a $20M warehouse debt facility, will be used to expand TenetConnect, the company’s digital platform for renewable energy that decreases the utility bills of EV owners. The round was led by Nyca Partners and joined by Assurant Ventures and Giant Ventures.

KeyChain Raises $18M in Seed Funding. Keychain is an AI startup to help CPG companies find manufacturing partners. The funding will help the team work with a select few design partners and manufacturers to launch the product. Lightspeed Venture Partners led the deal, with additional participation from Box Group, Afore Capital, and SV Angel.

Revolv Raises $25M in Funding. Revolv enables businesses to decarbonize their fleets by providing them with a full-service platform which encompasses electric vehicles and EV charging infrastructure, supported by the company's post-implementation fleet optimization, analytics, and insights. Revolv has raised $25M in equity project financing to fuel the deployment of fleet electrification projects. The funding comes from Greenbacker Capital Management.

Upway Raises $30M in Series B Funding. Upway is an eBike marketplace which refurbishes and re-sells electronic bikes. The company will use the funds to fuel further expansion into the United States. The round was led by Korelya Capital.

Logcomex Raises $33M in Funding. Logcomex is a Brazil-based startup with real-time data on imports and exports, including logistics and freight forwarding. The additional capital will be used to build out the product and expand to other parts of Latin America. Riverwood Capital led the round, with additional participation from Endeavor Catalyst, Igah Ventures, and others.

Crisp Raises €35M in Series C Funding. Crisp offers next-day grocery delivery, using an approach of operating a single warehouse for each market it serves. The funding will be used to scale operations in its home market of Belgium as well as in the Netherlands. The capital comes from existing investors Target Global and Keen Venture Partners, as well as a handful of family offices and angels.

Arrival Raises $50M in Bridge Loan. Arrival is a EV startup that had previously gone public via SPAC, planning to use microfactories to build electric buses, vans, and cars. The bridge financing will be used to keep the company afloat will trying to find a potential sale. The funding was provided by Antara Capital and Highbridge Capital Management.

Element Energy Raises $73M in Series B Funding. Element Energy offers a battery management system for first and second life battery storage and is working to deploy its software for battery operations and maintenance. Element’s technology is being validated via a 50 MWh pilot project through which the company plans to collect necessary data, obtain UL certification, and proceed to commercialization. Cohort Ventures and ‘one of the largest clean energy generation companies in the U.S’. co-led the round and were joined by new investors, Drive Catalyst, FM Capital, AFW Partners and Mitsubishi Heavy Industries. The Series B funding comes alongside a $38M debt facility from Keyframe Capital Partners.

Urbanic Raises $150M in Series C Funding. Urbanic is a fashion brand leveraging AI to generate fashion designs and improve supply chain efficiency. The capital will be used to accelerate growth and expansion to more global consumers. The round saw participation from Mirabaud Lifestyle Impact & Innovation Fund, D1 Capital Partners, JAM Fund, and other investors.

MercuryGate Acquires International Trade Systems. MercuryGate is a global TMS. ITS is a SaaS provider of cross-border customs clearance capabilities. The acquisition will allow MercuryGate to provide their customers full visibility and a holistic view to manage their global trade activities.

Who's Hiring? 👩‍💻

Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!

People Operations Associate at Amitruck in Kenya.

Sales Development Representative at Stord in Atlanta, GA.

Partnership Manager / Senior Growth Manager at Rouvia in Berlin, Germany (Remote).