Dynamo Dispatch (2024/06/17)
Issue 290 | Tenderd, RetailReady, Ship Angel
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 💭
It was an exciting week as two startups within the Dynamo portfolio announced some big news:
💥 Tenderd announced its $30M Series A to continue its mission in transforming data from heavy equipment used in construction, manufacturing, and logistics operations into actionable insights.
💥 Gatik, fresh off its strategic partnership with Isuzu just weeks prior, has announced another strategic alliance with ITOCHU, one of Japan’s largest general trading and investment companies.
📢 Calling all founders, Hub + Spoke applications are now open! This year’s event is from October 7-9th in Chattanooga, TN, and provides unrivaled access to potential customers and partners. Big shoutout to our sponsors for their continued support: Lineage, Schneider National, and EPB.
🥰 Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things supply chain and mobility.
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Madelyn, Derrek, and the rest of the Dynamo team
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Supply Chain 📦
⭐ De Minimis Crackdown: What Shippers Should Know. US Customs and Border Protection has intensified enforcement on low-cost shipments, including the suspension of several customs brokers from the Entry Type 86 program. This program, crucial for eComm brands like Shein, allows tax- and duty-free entry for shipments valued at $800 or less. CBP's crackdown aims to address issues such as misclassified goods and vague data entries, complicating efforts to intercept illegal substances and counterfeit products. While shippers are advised to ensure compliance with new filing requirements to avoid disruptions, it’s likely that there’ll be additional developments as the US government continues to assess the de minimis rule. In a different government response, Inside the White House Push to Reopen Baltimore’s Harbor.
Dockworkers Cancel Bargaining, Threaten Strike at US Seaports. Dockworkers at East Coast and Gulf Coast seaports canceled scheduled labor talks last week, raising the potential for a strike later this year at major US trade gateways. The International Longshoremen’s Association called off the negotiations in Newark, NJ after protesting the use of automated machinery, which the union claims breaches prior agreements. This disruption could impact over 45K dockworkers ahead of the current contract's expiration on September 30, coinciding with peak holiday shipping and the presidential election period. Additionally at the seaports, Port of Los Angeles Imports Fell 4.5% in May, Exports Rose 23.8% and Ocean Disruption Modal Shift Puts Air Cargo On Course for Solid 2024.
Food Companies Hope You Won’t Notice Shortages Are Raising Prices. Despite warnings of shortages for various foods like peaches, avocados, and beef, companies have managed to maintain supply through strategic sourcing and global networks. Still, the food supply chain remains increasingly vulnerable to disruptions from climate change, geopolitical tensions, and pandemics, leading to a “volatility tax” that’s been driving up grocery prices. As long as corporations continue to adapt and fill gaps, the broader public and policymakers may not fully recognize the underlying threats to food security. In other trends, Summer Monthly Imports to Hit Highest Level Since 2022 while Trucking Payrolls Slide on Weaker Freight Demand.
Ikea Examines US Production Boost Amid Global Trade Disruption. Ikea plans to boost production in the US and the Americas to counteract shipping disruptions and a shift away from global trade. Susanne Waidzunas, Inter Ikea's global supply manager, highlighted the need for increased regional presence, particularly in North America, due to the impact of the Houthi attacks on shipping in the Red Sea. Currently only 10% of Ikea products sold in the Americas are locally produced, but the company sees potential in expanding its footprint. The ongoing global shipping disruptions have prompted Ikea to reconsider its supply chain dependencies and adapt to a more volatile global trade environment. As for the Red Sea crisis, Container Shippers Stock Prices Fall On Possible Easing of Red Sea Hostilities.
Descartes 2024 Transportation Management Benchmark Survey. Descartes’ 8th annual global transportation management benchmark survey reveals that 40% of shippers and logistics service providers plan to invest in transportation technology to adapt to industry and regulatory changes. This figure rises to 44% among top financial performers, compared to 32% for poorer performers. For the seventh consecutive year, real-time transportation visibility remains the top priority for IT investment, cited by 36% of respondents, followed by order management (35%) and fleet routing (29%). The survey highlights a clear correlation between business performance and the strategic value placed on investing in technology to enhance customer delivery options and drive growth. From another survey, Gartner Names Three Steps to Mitigate Long-Term Resource Constraints.
Mobility 🚗
⭐ GM Gives Cruise $850M Lifeline as it Relaunches Robotaxis in Houston. This $850M capital infusion from GM aims to bridge funding for Cruise until a more sustainable, long-term strategy is identified, including potential new partnerships. Despite GM's previous announcement to reduce spending on Cruise in 2024 due to safety incidents, the company emphasizes that the new investment is necessary to advance technology, though overall operating costs remain lower. Cruise is gradually re-entering the market with small, human-monitored fleets, aiming to rebuild public trust and eventually reinstate its operating permits in California. For more, Cruise Eases Back into Houston.
China’s EV Makers Saw Europe Tariffs Coming, and Many Already Have a Plan. Chinese EV makers have been preparing for potential hefty tariffs in Europe, a key market for them. In response to new EU tariffs of up to 38% some have started building factories in Europe, formed joint ventures, or looked to export from third countries, while others are shifting focus to different markets. Despite these challenges, major players like BYD and NIO continue to invest heavily in Europe to sell their EVs at higher markups. Although the tariffs complicate plans in the short term, analysts believe Chinese EV makers will persist in their efforts to gain a foothold in Europe, leveraging local manufacturing and partnerships to mitigate the impact. More on this: Breakingviews: Chinese EV Makers will Drive Around EU Tariffs.
Audi to Invest €1B in Mexico for EV Production. Aiming to capitalize on US tax incentives for North American-assembled EVs, Audi is planning to manufacture an e-tron model in Mexico and is investing over €1B in its San José Chiapa plant in Puebla, creating more than 500 new jobs. The facility (operational since 2016) currently produces the Audi Q5 mid-size SUV and will be adapted to build the next-gen Audi Q8 e-tron. Originally planned for production in Brussels, the Q8 e-tron will now be made in Mexico starting from 2027. This strategic move is expected to boost the model's popularity in the US market, provided it meets American consumer preferences and competitive pricing. Completely unrelated, Kia Recalls Up to 463K Telluride SUVs for Seat Motor Fire Risk.
$1.3B Earmarked for EV Charging Network Expansion in US. The Biden-Harris administration has opened applications for $1.3B in funding to expand EV charging infrastructure across urban and rural areas in the US. The largest single grant funding opportunity for EV charging in US history, part of the bipartisan Infrastructure Law, builds on the previous round that awarded $622.6M to 47 projects. This new funding round increases the maximum distance from an alternative fuel corridor from one mile to five miles, enhancing connectivity and flexibility for developers. Also in EV charging, San Francisco Launches Curbside EV Charging Pilot Program.
Tesla Shareholders Vote to Reinstate Elon Musk’s $56B Pay Package. Tesla shareholders voted to ratify CEO Elon Musk's 2018 pay plan, despite a Delaware judge's ruling that it had been improperly granted. This vote, which saw 77% approval, does not override the court’s decision but is seen as a PR win for Musk. At the annual meeting in Austin, Texas, Musk expressed his enthusiasm and shared updates on Tesla’s progress, including Cybertruck deliveries and plans for autonomous vehicles and humanoid robots. Shareholders also voted in favor of moving Tesla’s incorporation from Delaware to Texas, aligning with the location of its largest US factory. Also on Tesla: Tesla Robotaxi Revenue is Likely Years Away, JPMorgan Warns.
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 💸
💥 Tenderd Raises $30M in Series A Funding. Dynamo portfolio company Tenderd provides a platform that transforms data from heavy equipment used in construction, manufacturing, and logistics operations into actionable insights. The funding will be used to expand global presence. The round was led by A.P. Moller Holding with participation from Quadri Ventures, Saurya Prakash, Wa’ed Ventures, Nakhla Ventures, SOMA Capital, and Liquid 2 Ventures.
RetailReady Raises $3.3M in Seed Funding. RetailReady is a startup that leverages AI to replace paper warehouse manuals that document packing instructions. The funding will be used to hire additional employees and focus on product and tech development. Wischoff Ventures led the round, with participation from Y Combinator, 640 Oxford, Lombardstreet Ventures, Duke Capital Partners, and a group of angel investors.
Loady Raises €3.2M in Seed Funding. Loady is a cross-industry platform for optimizing logistics by offering a master data platform that can be shared with logistics partners. The capital will be used to further expand its business activities. BW Innovation Fonds and MBG Mittelständische Beteiligungsgesellschaft Baden-Württemberg led the round, with participation from Chemovator and KST Invest.
Skye Air Raises $4M in Venture Funding. Skye Air is an India-based drone delivery logistics provider. The capital will be used to expand its last-mile network in Gurugram and other cities for healthcare, e-commerce, and quick-commerce deliveries. The round included Mount Judi Ventures, Chiratae Ventures, Venture Catalyst, Windrose Capital, Tremis Capital, and others.
Tern AI Raises $4.4M in Seed Funding. Tern AI offers a navigation solution which can recognize the position of a vehicle or person without relying on satellite signal. The round will support the company’s commercial launch scheduled for September. The funding comes from Scout Ventures, Shadow Capital, Bravo Victor VC and Veteran Fund
Ship Angel Raises $5M in Seed Funding. Ship Angel is a workflow platform for cargo owners. The funds will be used to support the expansion of its ocean and air freight rate management platform. The round was co-led by Glasswing Ventures and Newark Venture Partners with participation from Bienville Capital, Socii Capital, and Plug and Play.
Aepnus Technology Raises $8M in Seed Funding. Aepnus Technology is the developer of an electrochemical platform, offering an end-to-end sodium sulfate recycling technology to improve circularity and reduce emissions in battery supply chain chemicals. The round will enable acceleration of the production and technology. It was led by Clean Energy Ventures with participation from Voyager Ventures, Lowercarbon Capital, Impact Science Ventures, Muus Climate Partners, and Gravity Climate Fund.
CargoSense Raises $8M in Series A Funding. CargoSense is a visibility OS platform powering supply chain automation using visibility data. The capital will be used to expand its partner ecosystem of integrated management systems. Lanza Tech Ventures led the round, with participation from Merck Global Health Innovation Fund, SmoothBrain, and others.
Whizz Raises $12M in Series A Funding. Whizz is an eBike subscription service for last-mile delivery drivers. The funding will fuel US expansion. LETA Capital led the round with participation from Flashpoint.
Unigrid Raises $12M in Series A Funding. Unigrid is a startup designing sodium-ion batteries for energy storage and light EVs. The capital will be used to get its batteries into production. Transition VC and Ritz Venture Capital led the round, with participation from Union Square Ventures and Foothill Ventures.
Echion Technologies Raises £29M in Series B Funding. Echion Technologies is a developer of niobium-based, fast-charging battery materials for applications such as rail, delivery vans, and more. The funding will be used to execute the GTM strategy and deploy the technology at volume. The round was led by Volta Energy Technologies with participation from existing investors CBMM, BGF, and Cambridge Enterprise Ventures.
Battery Smart Raises $65M in Series B Funding. Battery Smart is a Delhi-based EV battery swapping network. The capital will be used to enable expansion across additional cities in India. The round was led by LeapFrog Investments and joined by both new and existing investors, including MUFG Bank, Panasonic, Ecosystem Integrity Fund, Blume Ventures, and British International Investment, participated in the equity round.
FLO Raises $136M in Series E Funding. FLO is an EV charging network operator and equipment developer. The funding will be used to expand its network, develop new products, and go after new market segments. The round was led by Export Development Canada.
Descartes Acquires BoxTop Technologies for $13M. Descartes is a supply chain software platform. BoxTop Technologies is a British provider of shipment management solutions including freight management software for small and mid-sized logistics services providers. This marks the 32nd acquisition Descartes has made since 2015 as it increases the breadth of solutions available on the platform.
Intuit Acquires Zendrive. Intuit is a global financial tech platform with products including TurboTax, Credit Karma, and QuickBooks. Zendrive is a mobility risk intelligence provider that offers a usage-based auto insurance product. This acquisition gives Credit Karma members the option to receive real-time feedback on their driving and receive potential discounts before purchasing a policy.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Customer Success Manager at MilkMoovement in Toronto, ON.
Mid-Senior Fullstack Developer at Numadic in London, UK (Remote).
Specialist - Treasury Applications at Steam in Chattanooga, TN.