Dynamo Dispatch (2024/02/12)
Issue 268 | Guided Energy, Project 3 Mobility, Starship Technologies
Dynamo Dispatch. A weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
💥 Have you seen any interesting startups recently? Introduce us.
🗞️ If you were forwarded this and found it interesting, please sign up.
🎙 Check out Dynamo's podcast series, The Future of Supply Chain.
🤝 Interested in meeting with Dynamo? Schedule here with Derrek and Madelyn.
Weekly Commentary 💭
We’re grateful to have spent some time with many of you under the neon Vegas lights this week. Cheers to another successful Manifest with thoughtful conversations on all things supply chain! 🥂
💥 We’re thrilled to share our recent investment in Guided Energy, a company solving critical bottlenecks for commercial fleets in their electrification journeys. You can read more about the exciting work Guided Energy is undertaking in Techcrunch.
🥰 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
Note: please add “dynamo@substack.com” to your email client, so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
⭐ Maersk Slumps After Warning of Slowdown Once Freight Boost Fades. On its earnings call last week, Maersk warned of a downturn in the shipping industry later this year, foreseeing an oversupply of freight. Shares tumbled as much as 15% as CEO Vincent Clerc highlighted that the ongoing threats to maritime security on the Red Sea is masking a global overcapacity problem. The grim outlook highlights the fragility of the current market that should serve as a warning sign for the rest of 2024. On the road, Truckload Authority Correction Accelerates Declining 12% Faster This Winter.
Mexico Overtakes China As the Leading Source of Goods Imported By US. Mexico surpassed China as the top source of US imports for the first time in over 20 years, signaling shifting trade dynamics amid strained US-China relations. From 2022 to 2023, Chinese imports dropped 20% to $427B while Mexican imports rose 5% to $475B. Tariffs imposed on Chinese imports since 2018 has been driving the shift, Chinese manufacturers have been establishing factories in Mexico to take advantage of the USMCA free trade agreement. This trend underscores the complexity of global trade dynamics and the potential impact the 2024 election cycle might bring. Downstream, Logistics Hiring Ticks Up Despite Soft Freight Demand.
Amazon Delivered to Prime Members at the Fastest Speeds Ever in 2023 and Working to Get Faster in 2024. Amazon achieved record-breaking delivery speeds in 2023, delivering over 7B units to Prime members globally arriving the same or next day. This milestone reflects Amazon's commitment to optimizing its operations network, leveraging AI for inventory placement and regionalizing operations and transportation networks into smaller, easier-to-serve regions. Looking ahead to 2024, Amazon plans to further enhance delivery speeds by further optimizing operations locally, expanding Same-Day Delivery globally, and innovating with services like Prime Air drone delivery. Across the eComm landscape, Top Three Shipping Issues Caused by Rising eComm Volumes and Persistent eComm Growth Will Buoy Logistics Firms in 2024.
FedEx Fleet Restructure Poses Threat To Freighter Operators. FedEx's revamped air network strategy aims to address declining growth in its traditional express parcel business by targeting heavyweight cargo typically handled by logistics providers. By segmenting shipments and reallocating aircraft, FedEx seeks to optimize efficiency and expand into new market segments. However, challenges such as elevated cost structures and intense competition raise questions about the strategy's long-term viability. Despite these challenges, FedEx's efforts to adapt its operations reflect a proactive approach to evolving market dynamics and changing customer demands. Elsewhere in the air, Pilots Flying Amazon Cargo Say Employer Stalling Contract Talks and Air Rates Soar as Bangladesh Garment Exporters Switch From Ocean.
A Train Derailment Scarred One Ohio Town, Little Changed in the Railroad Industry. Following a toxic train derailment in Ohio last February, promises to enhance railroad safety have yielded little change, with an increase in some accident types reported. Data shows that derailments by major US freight railroads rose 13% between February and October in 2023 compared to the same time period in 2022. Although legislative efforts have stalled, railroads like Norfolk Southern have vowed to invest in technology and procedures to mitigate risks. Despite these efforts, challenges persist, including the need for industry-wide safety reporting systems and ongoing environmental concerns in affected communities.
Mobility 🚗
⭐ GM Envolve to Offer FreeWire EV Charging to Fleet Customers. FreeWire Technologies and GM Envolve have partnered to offer FreeWire's direct-current fast charging infrastructure to GM Evolve's fleet and commercial customers, aiming to simplify fleet vehicle electrification. FreeWire's DCFC products, which don't need electrical infrastructure upgrades, can reduce installation and operating costs significantly, making them more accessible for fleet operators. GM Envolve will facilitate the deployment of FreeWire's fast-charging solutions for its fleet customers, addressing obstacles like limited on-site power and lengthy construction timelines. FreeWire's Boost chargers are versatile, working with various types of vehicles and running off standard electrical connections, providing efficient charging solutions with built-in energy storage, which can alleviate electrical equipment shortages at fleet charging sites.
Bike-Friendly Paris Votes to Triple Parking Fees for SUVs. Parisians voted in favor of tripling parking charges for large SUVs in a referendum, with 54.5% in favor and 45.5% against, despite a low turnout of only 5.7%. The measure, aimed at discouraging bulky and polluting cars, aligns with Mayor Anne Hidalgo's efforts to promote a bikeable city and follows previous bans on e-scooters. While praised for its environmental stance, the decision has sparked opposition from car drivers and lobby groups citing concerns over freedom of vehicle choice and affordability. Elsewhere, Congestion Pricing in Manhattan is Coming — Here’s What NYC Motorists Need to Know, and Cargo Bikes Have a Notable Impact on Car Ownership, Says Recent Study.
Secondhand EVs Are Starting to Look Like a Bargain. The market for EVs is evolving, with significant drops in the prices of both new and used EVs including for popular models like the Porsche Taycan and Jaguar iPace. While lower prices benefit consumers, they pose challenges for early adopters and the car industry due to high depreciation rates, potentially impacting profits and leasing costs. Concerns about secondhand EVs' residual values and consumer trust underscore the need for government support, standardized battery health certification, and manufacturer investment to ensure a smoother transition to EV adoption and sustainability in the market. Related, Ford Rethinks EV Strategy, is Working on a Smaller, Cheaper EV Platform and Rivian's Affordable Small SUV Will Be Revealed March 7.
Toyota Adds $1.3B to US Factory to Produce Three-Row All-Electric SUV. Toyota is investing an additional $1.3B in its Kentucky factory to prepare for production of a new three-row all-electric SUV for the US market. The investment top up will be used to add a battery pack assembly line, and brings its total investment in the factory to nearly $10B. It also brings the total of new investments to boost US manufacturing operations to support electrification efforts to $17B. This move underscores Toyota's commitment to electrification after facing criticism for lagging behind the industry shift towards EVs. With production expected to start in 2025, the move is expected to position Toyota competitively with other electric SUV offerings in the US market. Speaking of major investments affecting EVs, Canada Nickel to Build $1B Nickel Processing Facility.
US Auto Sales Softened in January. January numbers have rolled in and US new vehicle sales declined to a 15M annual rate, lower than the previous month's 15.8M. Economists anticipated a slight slowdown but were surprised by the larger drop, possibly influenced by cold weather. Despite the decline, some experts suggest it's not indicative of a significant inflation point in consumer spending, with expectations that rate cuts from the Federal Reserve later in the year could bolster auto sales to a 16M rate. Completely unrelated, Japan's Hydrogen Prowess in Peril as China, US and EU Poised to Overtake and Honda Recalls 750K Vehicles Due to Airbag Seat Sensor Problem.
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.
Fundraises and M&A 💸
First Bite Raises $2M in Seed Funding. First Bite is a SaaS data platform to help food manufacturers maximize foodservice sales. The funding will be used for hiring to map out more of the market and add workflow tools. Bread & Butter Ventures led the round, with participation from Leadout Capital and Pathbreaker Ventures.
Cashinvoice Raises $3.4M in Series A Funding. Cashinvoice is an India-based supply chain financing platform. The latest funding will be used to expand operations to enhance presence in existing and newer markets and develop new products. Investors in the round included Pravega Ventures, HDFC Bank, and Accion Venture Lab.
Neatleaf Raises $4M in Funding. Neatleaf is building an autonomous robotic system designed for monitoring plant health in indoor cultivation environments. The funds will be used to enhance its cultivation management platform. AgFunder led the round.
Cosmic Aerospace Raises $4.5M in Seed Funding. Cosmic Aerospace is building electric aircrafts capable of flights up to 1K kilometers in distance. The capital will be used to help the company advance the development of its technologies. Pale Blue Dot led the round, with investors including Aera VC, Visionaries Club Tomorrow, Fifty Years, and others joining.
DUDE CHEM Raises €6.5M in Seed Funding. DUDE CHEM produces greener active pharmaceutical ingredients and intermediates. The funding will be used to expand its team of scientists and launch its first product for one of Europe’s leading generic drug producers. The round was co-led by Vorwerk Ventures and b2venture with participation from Frontline, Borski Fund, Auxxo, and Push Ventures.
Peripass Raises €7.5M in Funding. Peripass is a logistics startup making yard operations management software. The capital will be used to accelerate its global expansion. Welvaartfonds led the round.
OTO Raises $10M in Funding. OTO is a two-wheeler EV finance platform based in India. The latest round will be used to expand the company’s business to over 30 cities. GMO Venture Partners led the round, with participation from Turbostart and others.
Greyparrot Raises $12.8M in Strategic Funding. Greyparrot is a startup using computer vision for waste analytics. The strategic funding comes from Dutch recycling giant Bollegraaf Group, including the transfer of Bollegraaf’s own AI vision business to Greyparrot.
Aizon Raises $20M in Series C Funding. Aizon provides an AI-powered smart technology manufacturing platform for pharmaceutical manufacturers. The capital will be used to accelerate its development pipeline. The round was led by NewVale Capital with participation from existing investors Atlantic Bridge, Crosslink Capital, and Uncork Capital.
Daedalus Raises $21M in Series A Funding. Daedalus is a Germany-based company building factories using AI for bespoke precision parts, automating the entire manufacturing process from quote to delivery. The round was led by NGP Capital, with further participation from its existing investors, including Addition and Khosla Ventures.
Sensos Raises $22M in Series A Funding. Sensos is a supply chain management company which leverages its AI “control tower” to track items as well as manage inventory. The company also provides a unique cellular label, applied to packages to collect and analyze data regarding transportation and storage for logistics teams The funding will be used to further build the platform and fuel the go to market strategy. Magenta Venture Partners led the round with participation from JAL Ventures, Israel Cargo Logistics and Sumitomo Corp.
ProducePay Raises $38M in Series D Funding. ProducePay aims to eliminate food waste in the produce supply chain by enabling manufacturers to monetize their waste. The company achieves this through a platform which offers both supply chain monitoring and financing products for food growers and suppliers. The round was led by Syngenta Group Ventures with participation from Commonfund and Highgate Private Equity, G2 Venture Partners, Anterra Capital, Astanor Ventures, Endeavor8, Avenue Venture Opportunities, Avenue Sustainable Solutions and Red Bear Angels.
River Raises $40M in Series B Funding. River is a Bengaluru-based startup building multi-utility electric scooters. The capital will be used to continue growing its R&D and manufacturing capabilities. Yamaha Motor led the round, with additional participation from Al-Futtaim Group, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility.
Starship Technologies Raises $90M in Funding. Starship Technologies operates sidewalk delivery robots. The latest injection of capital will be used to fuel more geographic expansion. The round was co-led by Plural and Iconical.
Project 3 Mobility Raises €100M in Series A Funding. Project 3 Mobility is developing an ecosystem of urban autonomous mobility focused in the UK and Germany, including an autonomous EV, specialized infrastructure, and a mobility service. The funding will be used to significantly expand the team. TASARU Mobility Investments, a company fully owned by Public Investment Fund, one of the largest sovereign funds in the world, led the round.
CloudTrucks Acquires Shipwell’s Brokerage Business. CloudTrucks is a software platform for trucker owners and operators to run their business. Shipwell is a TMS provider. The deal allows Shipwell to operate as a purely neutral software vendor and CloudTrucks to provide its drivers with a more consistent flow of loads.
BlueYonder Acquires Flexis. BlueYonder is a supply chain solutions provider. Flexis is a software technology company whose expertise lies in optimizing manufacturing processes and coordinating transportation operations. With a strong clientele in the automotive and industrial OEM industries, the acquisition of Flexis is expected to enhance Blue Yonder's abilities to serve customers with “highly configurable products and expansive suppliers to plan and optimize their complex production facilities and network structures.”
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Sustainability Solutions Specialist at Improvin’ in Stockholm, SWE (Remote).
Full Stack Engineer at Tenderd in Dubai, UAE.
Staff Software Engineer at Gatik in Mountain View, CA.