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 💭
With summer kicking off in full gear, we want to make sure founders don’t forget to apply to our Hub + Spoke before the September 2nd deadline. It’s the perfect chance for supply chain startups to get in front of potential customers and partners to build sales funnel and get immediate feedback. We’re holding the event this year from October 7-9th in Chattanooga, TN. More details on the types of corporates you might expect to meet on our website.
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Supply Chain 📦
⭐ Amazon To Launch Temu-Like Discount Section With Direct Shipping From China. Amazon is planning to introduce a new section on its site featuring low-cost items shipped directly from China, aiming to compete with fast-growing bargain platforms like Temu and Shein. This new marketplace will include unbranded fashion, home goods, and daily necessities, with delivery times ranging from 9 to 11 days. Amazon is set to start enrolling Chinese sellers this summer and begin accepting inventory in the fall. The initiative reflects Amazon’s strategy to expand selection and lower prices, while potentially leveraging a trade provision that exempts packages under $800 from US customs duties. Also from the region, A $100B Bet on China’s Economy Sours as Warehouses Empty.
FedEx Explores Divestment of Freight Business. FedEx is evaluating the potential sale or spinoff of its highly profitable LTL FedEx Freight to concentrate more on its parcel and logistics business. CEO Raj Subramaniam announced the strategic consideration, aiming to unlock shareholder value, with a decision expected by the end of the year. Despite being the best-performing segment with a 20% operating margin, analysts suggest that a spinoff rather than a sale would maximize shareholder returns, valuing FedEx Freight independently at over $50B. The move is seen as a strategic shift to enhance FedEx's market position and operational focus, similar to UPS's 2021 sale of its LTL unit. On the cold chain front, Lineage Files IPO to Become Largest Temperature Controlled Warehouse REIT in the World.
Ocean Carriers Unable to Cover Demand Despite Huge Capacity Injection. Strong demand on Asia’s export trade lanes is straining vessel capacity despite the addition of nearly 1.6M TEUs this year, leading to ongoing shortages and congestion, particularly around southern Africa and key ports. Equipment shortages are exacerbated by increased container prices and port congestion, with container volumes surging in ports. Analysts are divided on whether the early peak season will sustain momentum or lead to an early slowdown, with rates on Asia-Europe routes sharply rising and new rate increases set for July 1. Related, Idle Containership Fleet Dips to Pandemic Era Lows as Carriers Hunt Tonnage and How This Supply Crunch Looks Different Than Covid-Era Chaos.
Uber Freight and Self-Driving Trucks Startup Aurora Partner For The Long Haul. Uber Freight and Aurora have partnered to integrate Aurora’s autonomous driving technology into Uber Freight’s network through 2030. This collaboration will provide Aurora access to Uber Freight’s extensive customer base as it prepares to launch a fully driverless commercial service later this year. The partnership includes transitioning from a transportation-as-a-service model to a driver-as-a-service model, where carriers will purchase trucks equipped with Aurora’s technology. This move aims to address current challenges in the freight market and ensure both companies can leverage advanced autonomous solutions for better efficiency. In the air, Airbus Sheds $12B in Market Value After Slashing Guidance.
Pentagon Bulking Up Supply Chain: How a Texas Factory is Emerging As a Key Ammo Supplier. The US military is ramping up production of artillery shells and munitions with a $6B investment to modernize and expand output at plants like the new General Dynamics facility in Texas. This move aims to address shortages triggered by the Ukraine conflict, boosting 155mm shell production from 30K to 100K per month by the end of 2025. The Texas plant, featuring advanced machinery from Turkey and Germany, is a key part of this strategy, automating much of the production process. The initiative is part of a broader effort for the US to be self-sufficient in critical defense supplies, ensuring preparedness for future conflicts. Overseas, Japan Rolls Out Plan for 500km Conveyor Belt to Solve Looming Cargo Logistics Crisis.
Mobility 🚗
⭐ VW to Invest up to $5B in Rivian Software Deal. VW will invest up to $5B in EV startup Rivian, beginning with a $1B investment, as part of a joint venture to develop software and technology. This partnership will allow Volkswagen to leverage Rivian's expertise in electrical architecture and software platforms, enhancing VW's capabilities in the EV market. Rivian's stock surged over 49% following the announcement. The collaboration aims to develop software-defined vehicles, a critical step for both companies in the rapidly evolving EV industry. For more, Rivian Shares Soar on Massive Cash Injection from Volkswagen, Starting Immediately with $1B.
Car, Truck Dealers Assess Fallout From CDK Cyberattack. The auto industry is grappling with a cyberattack that disrupted dealer operations, affecting major players like Sonic Automotive and Penske Automotive Group. The incident has forced dealerships to use manual or workaround solutions to manage sales, inventory, and other critical functions. CDK Global, which services nearly 15K dealers, reported that it had started a restoration process that could take several days. The National Automobile Dealers Association advised dealers to scrutinize all data when systems are back online and warned of potential scams by individuals pretending to be CDK representatives.
Tesla Is About to Lose Its EV Market Majority in the US. Tesla is on the verge of losing its long-held dominance of outselling all other EV competitors combined in the US. In the 12 months through May, Tesla sold around 618K electric cars, slightly more than the 597K sold by other manufacturers. Traditional automakers have been closing the gap, with significant sales increases from companies like General Motors, Hyundai, and Kia, while Tesla's sales dropped 13% YoY in the first quarter. Despite still being the largest EV-maker in the US, Tesla's reliance on a limited model lineup and increasing competition may erode its market share further. Elsewhere, Hyundai's New EV Is The $22K Electric Car America Needs and Ferrari Decides to Offer Euro 7,000 Subscription Fee to Replace EV Car Batteries.
Toyota to Launch First EV with Advanced Self Driving System for China in 2025. Toyota plans to launch its first EV with advanced autonomous driving capabilities, similar to Tesla's Full Self-Driving, in China next year through its joint venture with Guangzhou Automobile Group. The new model, Bozhi 3X SUV, will feature advanced driving assistance for parking and navigation in various traffic conditions, positioning Toyota as a leader among foreign brands in China for autonomous driving technology. The JV is also collaborating with Momenta Global and Huawei to enhance its autonomous driving and in-vehicle software capabilities. Additionally, Toyota aims to introduce a cost-reducing iron phosphate lithium battery for its bZ4X EV between 2026 and 2027. Also in autonomy, Waymo Kills Waitlist, Opens Robotaxi Ride-Hailing for All in SF.
Ford Will Develop its Next Generation of EVs at New Long Beach Campus. Ford is re-establishing a presence in Long Beach by locating its research-and-development team for the next generation of EVs in Douglas Park near Long Beach Airport, with plans to open the campus in early 2025. This facility, which will eventually accommodate up to 450 employees, will focus on developing a low-cost, flexible electric vehicle platform. The team, led by former Tesla executive Alan Clarke, has attracted top engineering talent from other electric car manufacturers and aims to create a new generation of small, affordable vehicles inspired by the Model T. Ford's return to Long Beach marks a significant moment, as the company had not had a major presence there since closing its assembly plant in 1958. Also in Ford news, Ford Recalls Over 550K F-150 Pickups Over Transmission Issue.
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 💸
Freightmate AI Raises $650K in Pre-Seed Funding. Freightmate leverages AI to help freight forwarding companies manage tasks and documents. The capital will be used to enhance the features of its solution. Wischoff Ventures led the round.
Estuaire Raises €2.2M in Seed Funding. Estuaire is an aviation climate tech startup that leverages flight trajectories, weather, and passenger data to provide real-time climate analytics. The round was led by Satgana and joined by Safran Corporate Ventures, XAnge, and AFI Ventures.
BoxedUp Raises $2.8M in Seed Funding. BoxedUp is a platform that helps equipment rental companies automate manual processes to scale their businesses. Lavrock Ventures led the round, with participation from Slauson & Co, Black Capital, Hearst Ventures, Collab Capital, and Service Provider Capital.
Wilya Raises $4M in Seed Funding. Wilya provides an HR SaaS platform for the manufacturing sector to facilitate efficient allocation of skills and resources while promoting a more flexible approach to work. The funding will be used to accelerate development and deployment of the product and fuel market research. The round was led by Ironspring Ventures, with participation from Schematic Ventures, Plug & Play Ventures, Iron Prairie Ventures, Motivate Ventures, and 25Madison.
VoltR Raises €4M in Seed Funding. VoltR is a manufacturing leveraging AI processes for characterizing, reallocating, and reproducing batteries. The capital will be used to develop its pilot plant, industrialize its refurbishment processes, and recruit talent. Investors include C4 Ventures, Pays de la Loire Participations, and others.
Trampoline Raises $5M in Seed Funding. Trampoline is a B2B home decor firm offering retailers access to exclusive products from India. The capital will be used to expand its tech team in India and GTM team in the UK. Matrix Partners and WaterBridge Ventures co-led the round.
Libattion Raises €14M in Venture Funding. Libattion offers stationary energy storage solutions from upcycled EV batteries. The capital will be used to expand operations both in Europe and globally. A&G Energy Transition Tech Fund led the round, with participation from Teknia, HCapital New Ideas, and EBL.
COMPREDICT Raises $15M in Series B Funding. COMPREDICT offers automotive AI-powered virtual sensors that replace hardware for software-defined vehicles. The funding will be used to fuel international expansion, diversify product offerings, and enhance large-scale deployment capabilities. Woven Capital led the round.
Zyod Raises $18M in Series A Funding. Zyod is a tech-enabled fashion manufacturing platform. The capital will be used to expand its operations outside of India. RTP Global led the round.
Solus Power Raises £22M in Funding. Solus Power is an EV portable charging company. The funding comes from Petra Equity Partners and will be used to accelerate development and deployment of the technology.
LiveEO Raises €25M in Series B Funding. LiveEO uses satellite data and AI to monitor infrastructure such as railways, power lines, and pipelines. The capital will be used to accelerate development after tripling growth in 2023. NordicNinja and DeepTech & Climate Fonds led the round.
Formic Raises $27M in Series A Funding. Formic is a robot-as-a-service automation provider for US manufacturers. The capital will be used to expand its fleet of standardized equipment, network of support experts, and automation software. Blackhorn Ventures led the round, with participation from Mitsubishi HC Capital America, NEC, Translink Capital, Alumni Ventures, FJ Labs, Lux Capital, Initialized Capital, and Lorimer Ventures.
Hive Technologies Raises €28M in Series A Extension. Hive Technologies is a platform offering fulfillment, delivery, and post-purchase experience for brands. The capital will be used to accelerate growth and product development, targeting profitability next year. Earlybird Venture Capital led the round with participation from existing investors Tiger Global, Picus Capital, alfa8, and others.
Route Raises $40M in Series C Funding. Route is a post-purchase package tracking and protection solution. The capital will be used to expand its platform. Hanaco VC led the round, with participation from JAWS Ventures, Madrona Ventures, and Granger.
Prewave Raises $67M in Series B Funding. Prewave is an AI-enabled sustainability, risk, and compliance platform for supply chain challenges. The capital will be used to drive its next phase of global growth and to support further product R&D. Hedosophia led the round, with participation from existing investors Creandum, Ventech, Kompas, Speedinvest, and Working Capital Fund.
Rondo Energy Raises €75 Million in Funding. Rondo Energy delivers drop-in decarbonization energy for manufacturers from local and remote wind and solar resources. The capital will be used to expand its European presence and build projects. Breakthrough Energy Catalyst led the round.
Fetcherr Raises $90M in Series B Funding. Fetcherr provides the infrastructure for dynamic pricing systems for the airline industry. The round will be used to develop a new AI-powered “offer engine” as well as grow the team. The round was led by Battery Ventures.
Bright Machines Raises $106M in Series C Funding. Bright Machines offers equipment and software that helps automate a range of manufacturing tasks through the use of AI and ML. The round will go towards engineering efforts. The funding comes from Eclipse Ventures, NVIDIA, Microsoft and others. The equity is also in parallel to a $20M debt facility from JP Morgan.
Char.gy Raises £100M in Funding. Charg.gy is a London-based EV charging company. The capital will be used to boost the rollout of its on-street charging infrastructure across the UK. Zouk Capital led the round.
SkyCell Raises $116M in Series D Funding. SkyCell manufactures temperature-controlled door-to-door container solutions that allow pharma companies to optimize their supply chain. The capital will be used for the continued expansion of its global footprint with a key focus on the US and Asia. Tybourne Capital Management, CCI, and Catalyst led the round.
Rohlik Raises $170M in Funding. Rohlik is a Czech grocery delivery company focused on operating smaller warehouses and linking up ties with local producers and sellers. The capital will be used to expand its model in European, targeting 10 more cities in the next six years. European Bank for Reconstruction and Development led the round, with participation from existing investors Sofina, Index Ventures, Quadrille, and TCF Capital.
Creatio Raises $200M in Funding. Creatio is a no-code CRM and workflow automation platform. The funding will be used to build out the company’s AI capabilities and no-code features as all as expand its partner ecosystem. Sapphire Ventures led the round and was joined by StepStone Group, Volition Capital, and Horizon Capital.
Sila Raises $375M in Series G Funding. Sila is a battery materials company. The funding will be used to complete the build of the company’s Washington state factory and begin shipping battery anodes to customers such as Mercedes in Q4 2025. The round was led by Sutter Hill Ventures and joined by both new and existing investors Bessemer Venture Partners, Coatue, Perry Creek Capital, and more.
Mubadala Investment Company Acquires Getir’s Turkish Operations for $250M. Getir is an Istanbul-based rapid grocery delivery startup. Mubadala Investment Company is an Abu Dhabi wealth fund. The funding gives Mubadala majority control of Getir’s Turkish grocery operations while Getir continues its eComm, taxi hailing, and FreshDirect grocery service in New York.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Operations Specialist at Stord in Dallas, TX.
Compliance Manager at PaintJet in Hendersonville, TN (Remote).
Senior Product Manager at Sennder in Berlin, Germany.