Fintech Startup AtoB is Modernizing Trucking Industry, Raises $155M Series B

Fintech startup AtoB and its investors are all in when it comes to introducing digital technology into the trucking industry—as seen through their $155 million Series B round announced this week.?The startup’s platform modernizes the trucking industry’s payments processes and infrastructure. Founded just two years ago by?Harshita Arora,?Tushar Misra, and?Vignan Velivela, the team has raised $230 million of equity and debt to date.

“AtoB is working to improve the lives of the operators and drivers who power the global economy. For too long they’ve been left behind, without the basic financial services that most businesses take for granted,” said CEO and co-founder Velivela.

Focusing on fleet transportation, funds will be used for new product development and build on the benefits the platform has given to truckers and operators. Work and life improvements include no-fee fleet cards, instant direct-deposit payroll, and access to bank accounts and savings tools. In addition, they are able to offer working capital for small businesses, while expanding internationally.?

The founders identified long standing pain points in the fleet industry by looking at the makeup of the fleet industry. They found that the majority of truckers are small businesses with 92% operating 6 or fewer trucks and 97% with fewer than 20 trucks.?They set their goal to provide financial services that are specifically designed to meet the needs of this underserved segment.

They immediately saw the reliance that truck drivers and fleet owners have on under-regulated and exploitative fuel cards.?Those cards have limited networks, expensive fees and are paid via dated technology systems. Many truck drivers still receive hard copy checks that are difficult to deposit while on the road—a major inconvenience in a time focused industry.?

A&B’s platform reflects the power of digital technology.?It has a unique fuel analytics system that flags fuel theft and gives truckers ways to increase fuel efficiency.?Those two areas are very big challenges, yet fleets are also having to adapt to climate change. They are pressed to reduce their emissions and embrace cleaner fuels and electric vehicles.

The fast moving fintech startup knows that the $790 billion trucking industry presents an enormous fintech opportunity and their investors agree. The sizeable Series B funding led by the co-founder of Color Genomics?Elad Gil?and venture capital firm?General Catalyst?will allow the startup to seize the opportunity. Collaborative Fund, Contrary Capital,?XYZ Venture Capital, and?Leadout Capital?were also part of the round.

“AtoB is operating in a deceivingly large market in a space that needs innovation. Creating a modern logistics and payment stack that is unique to the transportation industry is an important problem to solve in improving the global supply chain,” said Taneja, Managing Partner at General Catalyst.

Also, there is no shortage of prominent individual and institutional backers behind AtoB such as: Eric Schmidt, former Google CEO and Alphabet executive chairman, Marc Benioff’s TIME Ventures, AngelList Founder Naval Ravikant,?DoorDash founders Tony Xu and Stanley Tang, Coinbase founder Brian Armstrong, Instacart CEO Fidji Simo; Jack and Max Altman of Altman Capital; and Long Journey Ventures.

The fintech startup’s founders’ passion for how they will change the trucking industry is readily evident to investors.?It is just one more element that bolsters how their investors positively see them and are confident of where AtoB is going.

“We partnered with AtoB because it’s clear fleet owners and operators have been underserved for a long time, and AtoB’s leadership is passionate about fixing that pain point,” said Ross Fubini of XYZ Venture Capital. “AtoB has grown their operations in a smart and intentional way, positioning them to support fleet businesses in the U.S. and beyond.”